Rep. Chad Hays

Filed: 3/23/2017

 

 


 

 


 
10000HB2498ham001LRB100 03891 MJP 22700 a

1
AMENDMENT TO HOUSE BILL 2498

2    AMENDMENT NO. ______. Amend House Bill 2498 by replacing
3everything after the enacting clause with the following:
 
4
"ARTICLE 1.

 
5    Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 1-2. Legislative intent.
9    (a) This Act is intended to benefit the people of the City
10of Chicago and the State of Illinois by assisting economic
11development and promoting tourism and by increasing the amount
12of revenues available to the City and the State to assist and
13support the City's pension obligation in accordance with Public
14Act 99-506.
15    (b) While authorization of casino gambling in Chicago will

 

 

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1enhance investment, development, and tourism in Illinois, it is
2recognized that it will do so successfully only if public
3confidence and trust in the credibility and integrity of the
4gambling operations and the regulatory process is maintained.
5Therefore, the provisions of this Act are designed to allow the
6Illinois Gaming Board to strictly regulate the facilities,
7persons, associations, and practices related to gambling
8operations pursuant to the police powers of the State,
9including comprehensive law enforcement supervision.
10Consistent with the Gaming Board's authority, the Gaming Board
11alone shall regulate any Chicago casino, just as it now
12regulates every other casino in Illinois.
 
13    Section 1-5. Definitions. As used in this Act:
14    "Authority" means the Chicago Casino Development Authority
15created by this Act.
16    "Casino" means one temporary land-based or water-based
17facility and one permanent land-based or water-based facility
18at which lawful gambling is authorized and licensed as provided
19in the Illinois Gambling Act.
20    "Casino Board" means the board appointed pursuant to this
21Act to govern and control the Authority.
22    "Casino management contract" means a legally binding
23agreement between the Authority and a casino operator licensee
24to operate or manage a casino.
25    "Casino operator licensee" means any person or entity

 

 

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1selected by the Authority and approved and licensed by the
2Gaming Board to manage and operate a casino within the City of
3Chicago pursuant to a casino management contract.
4    "City" means the City of Chicago.
5    "Entity" means a corporation, joint venture, partnership,
6limited liability company, trust, or unincorporated
7association.
8    "Executive director" means the person appointed by the
9Casino Board to oversee the daily operations of the Authority.
10    "Gaming Board" means the Illinois Gaming Board created by
11the Illinois Gambling Act.
12    "Mayor" means the Mayor of the City.
 
13    Section 1-12. Creation of the Authority. There is hereby
14created a political subdivision, unit of local government with
15only the powers authorized by law, body politic, and municipal
16corporation, by the name and style of the Chicago Casino
17Development Authority.
 
18    Section 1-13. Duties of the Authority. It shall be the duty
19of the Authority, as an owners licensee under the Illinois
20Gambling Act, to promote and maintain a casino in the City. The
21Authority shall own, acquire, construct, lease, equip, and
22maintain grounds, buildings, and facilities for that purpose.
23However, the Authority shall contract with a casino operator
24licensee to manage and operate the casino and in no event shall

 

 

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1the Authority or City manage or operate the casino. The
2Authority may contract pursuant to the procedures set forth in
3Section 1-115 with other third parties in order to fulfill its
4purpose. The Authority is responsible for the payment of any
5fees required of a casino operator under subsection (a) of
6Section 7.9 of the Illinois Gambling Act if the casino operator
7licensee is late in paying any such fees. The Authority is
8granted all rights and powers necessary to perform such duties.
9Subject to the provisions of this Act, the Authority and casino
10operator licensee are subject to the Illinois Gambling Act and
11all of the rules of the Gaming Board, which shall be applied to
12the Authority and the casino operator licensee in a manner
13consistent with that of other owners licensees under the
14Illinois Gambling Act. Nothing in this Act shall confer
15regulatory authority on the Chicago Casino Development
16Authority. The Illinois Gaming Board shall have exclusive
17regulatory authority over all gambling operations governed by
18this Act.
 
19    Section 1-15. Casino Board.
20    (a) The governing and administrative powers of the
21Authority shall be vested in a body known as the Chicago Casino
22Development Board. The Casino Board shall consist of 5 members
23appointed by the Mayor. One of these members shall be
24designated by the Mayor to serve as chairperson. All of the
25members appointed by the Mayor shall be residents of the City.

 

 

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1    Each Casino Board appointee shall be subject to a
2preliminary background investigation completed by the Gaming
3Board within 30 days after the appointee's submission of his or
4her application to the Gaming Board. If the Gaming Board
5determines that there is a substantial likelihood that it will
6not find the appointee to be suitable to serve on the Casino
7Board (applying the same standards for suitability to the
8appointee as the Gaming Board would apply to an owners licensee
9key person under the Gaming Board's adopted rules), then the
10Gaming Board shall provide a written notice of such
11determination to the appointee and the Corporation Counsel of
12the City. The Mayor may then appoint a new candidate. If no
13such notice is delivered with respect to a particular
14appointee, then commencing on the 31st day following the date
15of the appointee's submission of his or her application to the
16Gaming Board, the appointee shall be deemed an acting member of
17the Casino Board and shall participate as a Casino Board
18member.
19    Each appointee shall be subject to a full background
20investigation and final approval by the Gaming Board prior to
21the opening of the casino. The Gaming Board shall complete its
22full background investigation of the Casino Board appointee
23within 3 months after the date of the appointee's submission of
24his or her application to the Gaming Board. If the Gaming Board
25does not complete its background investigation within the
263-month period, then the Gaming Board shall give a written

 

 

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1explanation to the appointee, as well as the Mayor, the
2Governor, the President of the Senate, and the Speaker of the
3House of Representatives, as to why it has not reached a final
4determination and set forth a reasonable time when such
5determination shall be made.
6    (b) Casino Board members shall receive $300 for each day
7the Authority meets and shall be entitled to reimbursement of
8reasonable expenses incurred in the performance of their
9official duties. A Casino Board member who serves in the office
10of secretary-treasurer may also receive compensation for
11services provided as that officer.
 
12    Section 1-20. Terms of appointments; resignation and
13removal.
14    (a) The Mayor shall appoint 2 members of the Casino Board
15for an initial term expiring July 1 of the year following final
16approval by the Gaming Board, 2 members for an initial term
17expiring July 1 three years following final approval by the
18Gaming Board, and one member for an initial term expiring July
191 five years following final approval by the Gaming Board.
20    (b) All successors shall be appointed by the Mayor to hold
21office for a term of 5 years from the first day of July of the
22year in which they are appointed, except in the case of an
23appointment to fill a vacancy. Each member, including the
24chairperson, shall hold office until the expiration of his or
25her term and until his or her successor is appointed and

 

 

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1qualified. Nothing shall preclude a member from serving
2consecutive terms. Any member may resign from office, to take
3effect when a successor has been appointed and qualified. A
4vacancy in office shall occur in the case of a member's death
5or indictment, conviction, or plea of guilty to a felony. A
6vacancy shall be filled for the unexpired term by the Mayor
7subject to the approval of the Gaming Board as provided in this
8Section.
9    (c) Members of the Casino Board shall serve at the pleasure
10of the Mayor. The Mayor or the Gaming Board may remove any
11member of the Casino Board upon a finding of incompetence,
12neglect of duty, or misfeasance or malfeasance in office or for
13a violation of this Act. The Gaming Board may remove any member
14of the Casino Board for any violation of the Illinois Gambling
15Act or the rules and regulations of the Gaming Board.
16    (d) No member of the Casino Board shall engage in any
17political activity. For the purpose of this Section, "political
18activity" means any activity in support of or in connection
19with any campaign for federal, State, or local elective office
20or any political organization, but does not include activities
21(i) relating to the support or opposition of any executive,
22legislative, or administrative action, as those terms are
23defined in Section 2 of the Lobbyist Registration Act, (ii)
24relating to collective bargaining, or (iii) that are otherwise
25in furtherance of the person's official duties or governmental
26and public service functions.
 

 

 

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1    Section 1-25. Organization of Casino Board; meetings.
2After appointment by the Mayor, the Casino Board shall organize
3for the transaction of business, provided that the Casino Board
4shall not take any formal action until after the Gaming Board
5has completed its preliminary background investigation of at
6least a quorum of the Casino Board as provided in subsection
7(a) of Section 1-15. The Casino Board shall prescribe the time
8and place for meetings, the manner in which special meetings
9may be called, and the notice that must be given to members.
10All actions and meetings of the Casino Board shall be subject
11to the provisions of the Open Meetings Act. Three members of
12the Casino Board shall constitute a quorum. All substantive
13action of the Casino Board shall be by resolution with an
14affirmative vote of a majority of the members.
 
15    Section 1-30. Executive director; officers.
16    (a) The Casino Board shall appoint an executive director,
17who shall be the chief executive officer of the Authority.
18    The executive director shall be subject to a preliminary
19background investigation to be completed by the Gaming Board
20within 30 days after the executive director's submission of his
21or her application to the Gaming Board. If the Gaming Board
22determines that there is a substantial likelihood that it will
23not find the executive director to be suitable to serve in that
24position (applying the same standards for suitability as the

 

 

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1Gaming Board would apply to an owners licensee key person under
2the Gaming Board's adopted rules), then the Gaming Board shall
3provide a written notice of such determination to the appointee
4and the Corporation Counsel of the City. The Casino Board may
5then appoint a new executive director. If no such notice is
6delivered, then commencing on the 31st day following the date
7of the executive director's submission of his or her
8application to the Gaming Board, the executive director shall
9commence all duties as the acting executive director of the
10Authority.
11    The executive director shall be subject to a full
12background investigation and final approval by the Gaming Board
13prior to the opening of the casino. The Gaming Board shall
14complete its full background investigation of the executive
15director within 3 months after the date of the executive
16director's submission of his or her application to the Gaming
17Board. If the Gaming Board does not complete its background
18investigation within the 3-month period, then the Gaming Board
19shall give a written explanation to the appointee, as well as
20the Mayor, the Governor, the President of the Senate, and the
21Speaker of the House of Representatives, as to why it has not
22reached a final determination and set forth a reasonable time
23when such determination shall be made.
24    (b) The Casino Board shall fix the compensation of the
25executive director. Subject to the general control of the
26Casino Board, the executive director shall be responsible for

 

 

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1the management of the business, properties, and employees of
2the Authority. The executive director shall direct the
3enforcement of all resolutions, rules, and regulations of the
4Casino Board, and shall perform such other duties as may be
5prescribed from time to time by the Casino Board. All employees
6and independent contractors, consultants, engineers,
7architects, accountants, attorneys, financial experts,
8construction experts and personnel, superintendents, managers,
9and other personnel appointed or employed pursuant to this Act
10shall report to the executive director. In addition to any
11other duties set forth in this Act, the executive director
12shall do or shall delegate to an employee or agent of the
13Authority to do all of the following:
14        (1) Direct and supervise the administrative affairs
15    and activities of the Authority in accordance with its
16    rules, regulations, and policies.
17        (2) Attend meetings of the Casino Board.
18        (3) Keep minutes of all proceedings of the Casino
19    Board.
20        (4) Approve all accounts for salaries, per diem
21    payments, and allowable expenses of the Casino Board and
22    its employees and consultants.
23        (5) Report and make recommendations to the Casino Board
24    concerning the terms and conditions of any casino
25    management contract.
26        (6) Perform any other duty that the Casino Board

 

 

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1    requires for carrying out the provisions of this Act.
2        (7) Devote his or her full time to the duties of the
3    office and not hold any other office or employment.
4    (c) The Casino Board may select a secretary-treasurer and
5other officers to hold office at the pleasure of the Casino
6Board. The Casino Board shall fix the duties of such officers.
 
7    Section 1-31. General rights and powers of the Authority.
8    (a) In addition to the duties and powers set forth in this
9Act, the Authority shall have the following rights and powers:
10        (1) Adopt and alter an official seal.
11        (2) Establish and change its fiscal year.
12        (3) Sue and be sued, plead and be impleaded, all in its
13    own name, and agree to binding arbitration of any dispute
14    to which it is a party.
15        (4) Adopt, amend, and repeal bylaws, rules, and
16    regulations consistent with the furtherance of the powers
17    and duties provided for.
18        (5) Maintain its principal office within the City and
19    such other offices as the Casino Board may designate.
20        (6) Select locations in the City for a temporary and a
21    permanent casino.
22        (7) Subject to the bidding procedures of Section 1-115
23    of this Act, retain or employ, either as regular employees
24    or independent contractors, consultants, engineers,
25    architects, accountants, attorneys, financial experts,

 

 

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1    construction experts and personnel, superintendents,
2    managers and other professional personnel, and such other
3    personnel as may be necessary in the judgment of the Casino
4    Board, and fix their compensation; however, employees of
5    the Authority shall be hired pursuant to and in accordance
6    with the rules and policies the Authority may adopt.
7        (8) Pursuant to Section 1-115 of this Act, own,
8    acquire, construct, equip, lease, operate, manage, and
9    maintain grounds, buildings, and facilities to carry out
10    its corporate purposes and duties.
11        (9) Pursuant to Section 1-115, and subject to the
12    oversight, review, and approval of the Gaming Board, enter
13    into, revoke, and modify contracts in accordance with the
14    rules of the Gaming Board as consistently applied to all
15    owners licensees under the Illinois Gambling Act, provided
16    that the Authority may enter into contracts for the design,
17    construction, and outfitting of a temporary casino prior to
18    the Gaming Board's final approval of the Authority's
19    executive director and the members of the Casino Board and
20    prior to the Gaming Board's issuance of the Authority's
21    owners license. Provided further that the entities
22    selected by the Authority for the design, construction, and
23    outfitting of the temporary casino shall be subject to a
24    preliminary background investigation to be completed by
25    the Gaming Board within 30 days after the Gaming Board is
26    provided the identities of the entities. If the Gaming

 

 

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1    Board determines that there is a substantial likelihood
2    that the entities are not suitable or acceptable to perform
3    their respective functions, then the Gaming Board shall
4    immediately provide notice of that determination to the
5    Authority. If no such notice is delivered, then, commencing
6    on the 31st day following the date on which the information
7    identifying such entities is provided to the Gaming Board,
8    such entities shall be permitted to commence the services
9    contemplated for the design, construction, and outfitting
10    of the temporary casino. In no event, however, shall the
11    Authority open a casino until after the Gaming Board has
12    finally approved the Authority's executive director and
13    the members of the Casino Board and the Gaming Board has
14    issued the Authority's owners license and the casino
15    operator's casino operator license.
16        (10) Enter into a casino management contract subject to
17    the provisions of Section 1-45 of this Act.
18        (11) Negotiate and enter into intergovernmental
19    agreements with the State and its agencies, the City, and
20    other units of local government, in furtherance of the
21    powers and duties of the Casino Board.
22        (12) Receive and disburse funds for its own corporate
23    purposes or as otherwise specified in this Act.
24        (13) Borrow money from any source, public or private,
25    for any corporate purpose, including, without limitation,
26    working capital for its operations, reserve funds, or

 

 

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1    payment of interest, and to mortgage, pledge, or otherwise
2    encumber the property or funds of the Authority and to
3    contract with or engage the services of any person in
4    connection with any financing, including financial
5    institutions, issuers of letters of credit, or insurers and
6    enter into reimbursement agreements with this person or
7    entity which may be secured as if money were borrowed from
8    the person or entity.
9        (14) Issue bonds as provided for under this Act.
10        (15) Receive and accept from any source, private or
11    public, contributions, gifts, or grants of money or
12    property to the Authority.
13        (16) Provide for the insurance of any property,
14    operations, officers, members, agents, or employees of the
15    Authority against any risk or hazard, to self-insure or
16    participate in joint self-insurance pools or entities to
17    insure against such risk or hazard, and to provide for the
18    indemnification of its officers, members, employees,
19    contractors, or agents against any and all risks.
20        (17) Exercise all the corporate powers granted
21    Illinois corporations under the Business Corporation Act
22    of 1983, except to the extent that powers are inconsistent
23    with those of a body politic and municipal corporation.
24        (18) Do all things necessary or convenient to carry out
25    the powers granted by this Act.
26    (b) The Casino Board shall comply with all applicable legal

 

 

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1requirements imposed on other owners licensees to conduct all
2background investigations required under the Illinois Gambling
3Act and the rules of the Gaming Board. This requirement shall
4also extend to senior legal, financial, and administrative
5staff of the Authority.
 
6    Section 1-32. Ethical conduct.
7    (a) Casino Board members and employees of the Authority
8must carry out their duties and responsibilities in such a
9manner as to promote and preserve public trust and confidence
10in the integrity and conduct of gaming.
11    (b) Except as may be required in the conduct of official
12duties, Casino Board members and employees of the Authority
13shall not engage in gambling on any riverboat, in any casino,
14or in an electronic gaming facility licensed by the Illinois
15Gaming Board or engage in legalized gambling in any
16establishment identified by Gaming Board action that, in the
17judgment of the Gaming Board, could represent a potential for a
18conflict of interest.
19    (c) A Casino Board member or employee of the Authority
20shall not use or attempt to use his or her official position to
21secure or attempt to secure any privilege, advantage, favor, or
22influence for himself or herself or others.
23    (d) Casino Board members and employees of the Authority
24shall not hold or pursue employment, office, position,
25business, or occupation that may conflict with his or her

 

 

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1official duties. Employees may engage in other gainful
2employment so long as that employment does not interfere or
3conflict with their duties. Such employment must be disclosed
4to the executive director and approved by the Casino Board.
5    (e) Casino Board members, employees of the Authority, and
6elected officials and employees of the City may not engage in
7employment, communications, or any activity identified by the
8Casino Board or Gaming Board that, in the judgment of either
9entity, could represent the potential for or the appearance of
10a conflict of interest.
11    (f) Casino Board members, employees of the Authority, and
12elected officials and employees of the City may not have a
13financial interest, directly or indirectly, in his or her own
14name or in the name of any other person, partnership,
15association, trust, corporation, or other entity in any
16contract or subcontract for the performance of any work for the
17Authority. This prohibition shall extend to the holding or
18acquisition of an interest in any entity identified by the
19Casino Board or the Gaming Board that, in the judgment of
20either entity, could represent the potential for or the
21appearance of a financial interest. The holding or acquisition
22of an interest in such entities through an indirect means, such
23as through a mutual fund, shall not be prohibited, except that
24the Gaming Board may identify specific investments or funds
25that, in its judgment, are so influenced by gaming holdings as
26to represent the potential for or the appearance of a conflict

 

 

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1of interest.
2    (g) Casino Board members, employees of the Authority, and
3elected officials and employees of the City may not accept any
4gift, gratuity, service, compensation, travel, lodging, or
5thing of value, with the exception of unsolicited items of an
6incidental nature, from any person, corporation, or entity
7doing business with the Authority.
8    (h) No Casino Board member, employee of the Authority, or
9elected official or employee of the City may, during employment
10or within a period of 2 years immediately after termination of
11employment, knowingly accept employment or receive
12compensation or fees for services from a person or entity, or
13its parent or affiliate, that has engaged in business with the
14Authority that resulted in contracts with an aggregate value of
15at least $25,000 or if that Casino Board member or employee has
16made a decision that directly applied to the person or entity,
17or its parent or affiliate.
18    (i) A spouse, child, or parent of a Casino Board member,
19employee of the Authority, or elected official or employee of
20the City may not have a financial interest, directly or
21indirectly, in his or her own name or in the name of any other
22person, partnership, association, trust, corporation, or other
23entity in any contract or subcontract for the performance of
24any work for the Authority. This prohibition shall extend to
25the holding or acquisition of an interest in any entity
26identified by the Casino Board or Gaming Board that, in the

 

 

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1judgment of either entity, could represent the potential for or
2the appearance of a conflict of interest. The holding or
3acquisition of an interest in such entities through an indirect
4means, such as through a mutual fund, shall not be prohibited,
5except that the Gaming Board may identify specific investments
6or funds that, in its judgment, are so influenced by gaming
7holdings as to represent the potential for or the appearance of
8a conflict of interest.
9    (j) A spouse, child, or parent of a Casino Board member,
10employee of the Authority, or elected official or employee of
11the City may not accept any gift, gratuity, service,
12compensation, travel, lodging, or thing of value, with the
13exception of unsolicited items of an incidental nature, from
14any person, corporation, or entity doing business with the
15Authority.
16    (k) A spouse, child, or parent of a Casino Board member,
17employee of the Authority, or elected official or employee of
18the City may not, while the person is a Board member or
19employee of the spouse or within a period of 2 years
20immediately after termination of employment, knowingly accept
21employment or receive compensation or fees for services from a
22person or entity, or its parent or affiliate, that has engaged
23in business with the Authority that resulted in contracts with
24an aggregate value of at least $25,000 or if that Casino Board
25member, employee, or elected official or employee of the City
26has made a decision that directly applied to the person or

 

 

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1entity, or its parent or affiliate.
2    (l) No Casino Board member, employee of the Authority, or
3elected official or employee of the City may attempt, in any
4way, to influence any person or entity doing business with the
5Authority or any officer, agent, or employee thereof to hire or
6contract with any person or entity for any compensated work.
7    (m) No Casino Board member, employee of the Authority, or
8elected official or employee of the City shall use or attempt
9to use his or her official position to secure, or attempt to
10secure, any privilege, advantage, favor, or influence for
11himself or herself or others. No Casino Board member, employee
12of the Authority, or elected official or employee of the City
13shall, within one year immediately preceding appointment by the
14Mayor or employment, have been employed or received
15compensation or fees for services from a person or entity, or
16its parent or affiliate, that has engaged in business with the
17Casino Board, a licensee under this Act, or a licensee under
18the Illinois Gambling Act.
19    (n) Any communication between an elected official of the
20City and any applicant for or party to a casino management
21contract with the Authority, or an officer, director, or
22employee thereof, concerning any matter relating in any way to
23gaming or the Authority shall be disclosed to the Casino Board
24and the Gaming Board. Such disclosure shall be in writing by
25the official within 30 days after the communication and shall
26be filed with the Casino Board and the Gaming Board. Disclosure

 

 

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1must consist of the date of the communication, the identity and
2job title of the person with whom the communication was made, a
3brief summary of the communication, the action requested or
4recommended, all responses made, the identity and job title of
5the person making the response, and any other pertinent
6information. In addition, if the communication is written or
7digital, then the entire communication shall be disclosed.
8    Public disclosure of the written summary provided to the
9Casino Board and the Gaming Board shall be subject to the
10exemptions provided under Section 7 of the Freedom of
11Information Act.
12    This subsection (n) shall not apply to communications
13regarding traffic, law enforcement, security, environmental
14issues, City services, transportation, or other routine
15matters concerning the ordinary operations of the casino.
16    (o) For purposes of this Section:
17    "Ordinary operations" means operations relating to the
18casino facility other than the conduct of gambling activities.
19    "Routine matters" includes the application for, issuance,
20renewal, and other processes associated with City permits and
21licenses.
22    "Employee of the City" means only those employees of the
23City who provide services to the Authority or otherwise
24influence the decisions of the Authority or the Casino Board.
25    (p) Any Casino Board member or employee of the Authority
26who violates any provision of this Section is guilty of a Class

 

 

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14 felony.
 
2    Section 1-45. Casino management contracts.
3    (a) In accordance with all applicable procurement laws and
4rules, the Casino Board shall develop and administer a
5competitive sealed bidding process for the selection of a
6potential casino operator licensee to develop or operate a
7casino within the City. The Casino Board shall issue one or
8more requests for proposals. The Casino Board may establish
9minimum financial and investment requirements to determine the
10eligibility of persons to respond to the Casino Board's
11requests for proposals, and may establish and consider such
12other criteria as it deems appropriate. The Casino Board may
13impose a reasonable fee upon persons who respond to requests
14for proposals, in order to reimburse the Casino Board for its
15costs in preparing and issuing the requests and reviewing the
16proposals. At least 30 days prior to the commencement of the
17competitive bidding process, the Gaming Board shall be given an
18opportunity to review the competitive bidding process
19established by the Casino Board. During the competitive bidding
20process, the Casino Board shall keep the Gaming Board apprised
21of the process and the responses received in connection with
22the Casino Board's requests for proposals.
23    (b) Within 5 business days after the time limit for
24submitting bids and proposals has passed, the Casino Board
25shall make all bids and proposals public, provided, however,

 

 

10000HB2498ham001- 22 -LRB100 03891 MJP 22700 a

1the Casino Board shall not be required to disclose any
2information which would be exempt from disclosure under Section
37 of the Freedom of Information Act. Thereafter, the Casino
4Board shall evaluate the responses to its requests for
5proposals and the ability of all persons or entities responding
6to its requests for proposals to meet the requirements of this
7Act and any relevant provisions of the Illinois Gambling Act
8and to undertake and perform the obligations set forth in its
9requests for proposals.
10    (c) After reviewing proposals and selecting a successful
11bidder, the Casino Board shall enter into a casino management
12contract with the successful bidder authorizing the operation
13of a casino. The casino operator shall be subject to a
14background investigation and approval by the Gaming Board. The
15Gaming Board shall complete its background investigation and
16approval of the casino operator within 6 months after the date
17that the proposed casino operator submits its application to
18the Gaming Board. If the Gaming Board does not complete its
19background investigation and approval within the 6-month
20period, then the Gaming Board shall give a written explanation
21to the proposed casino operator and the chief legal officer of
22the Authority as to why it has not reached a final
23determination and when it reasonably expects to make a final
24determination. Validity of the casino management contract is
25contingent upon the issuance of a casino operator license to
26the successful bidder. If the Gaming Board grants a casino

 

 

10000HB2498ham001- 23 -LRB100 03891 MJP 22700 a

1operator license, the Casino Board shall transmit a copy of the
2executed casino management contract to the Gaming Board.
3    (d) After (1) the Authority has been issued an owners
4license, (2) the Gaming Board has issued a casino operator
5license, and (3) the Gaming Board has approved the members of
6the Casino Board, the Authority may conduct gaming operations
7at a temporary facility, subject to the adopted rules of the
8Gaming Board, for no longer than 24 months after gaming
9operations begin. The Gaming Board may, after holding a public
10hearing, grant an extension so long as a permanent facility is
11not operational and the Authority is working in good faith to
12complete the permanent facility. The Gaming Board may grant
13additional extensions following further public hearings. Each
14extension may be for a period of no longer than 6 months.
15    (e) Fifty percent of any initial consideration received by
16the Authority that was paid as an inducement pursuant to a bid
17for a casino management contract or an executed casino
18management contract must be transmitted to the State and
19deposited into the Gaming Facilities Fee Revenue Fund. The
20initial consideration shall not include (1) any amounts paid to
21the Authority as reimbursement for its costs in preparing or
22issuing the requests for proposals and reviewing the proposals
23or (2) any amounts loaned to the Authority or paid by an entity
24on behalf of the Authority for the design, construction,
25outfitting, or equipping of the casino, pre-opening expenses,
26bank roll or similar expenses required to open and operate the

 

 

10000HB2498ham001- 24 -LRB100 03891 MJP 22700 a

1casino, or any license or per position fees imposed pursuant to
2the Illinois Gambling Act or any other financial obligation of
3the Authority.
 
4    Section 1-47. Freedom of Information Act. The Authority
5shall be a public body as defined in the Freedom of Information
6Act and shall be subject to the provisions of the Freedom of
7Information Act.
 
8    Section 1-50. Transfer of funds. The revenues received by
9the Authority (other than amounts required to be paid pursuant
10to the Illinois Gambling Act and amounts required to pay the
11operating expenses of the Authority, to pay amounts due the
12casino operator licensee pursuant to a casino management
13contract, to repay any borrowing of the Authority made pursuant
14to Section 1-31, to pay debt service on any bonds issued under
15Section 1-75, and to pay any expenses in connection with the
16issuance of such bonds pursuant to Section 1-75 or derivative
17products pursuant to Section 1-85) shall be transferred to the
18City by the Authority. Moneys transferred to the City pursuant
19to this Section shall be expended or obligated by the City for
20pension payments in accordance with Public Act 99-506.
 
21    Section 1-60. Auditor General.
22    (a) Prior to the issuance of bonds under this Act, the
23Authority shall submit to the Auditor General a certification

 

 

10000HB2498ham001- 25 -LRB100 03891 MJP 22700 a

1that:
2        (1) it is legally authorized to issue bonds;
3        (2) scheduled annual payments of principal and
4    interest on the bonds to be issued meet the requirements of
5    Section 1-75 of this Act;
6        (3) no bond shall mature later than 30 years; and
7        (4) after payment of costs of issuance and necessary
8    deposits to funds and accounts established with respect to
9    debt service on the bonds, the net bond proceeds (exclusive
10    of any proceeds to be used to refund outstanding bonds)
11    will be used only for the purposes set forth in this Act.
12    The Authority also shall submit to the Auditor General its
13projections on revenues to be generated and pledged to
14repayment of the bonds as scheduled and such other information
15as the Auditor General may reasonably request.
16    The Auditor General shall examine the certifications and
17information submitted and submit a report to the Authority and
18the Gaming Board indicating whether the required
19certifications, projections, and other information have been
20submitted by the Authority and whether the assumptions
21underlying the projections are not unreasonable in the
22aggregate. The Auditor General shall submit the report no later
23than 60 days after receiving the information required to be
24submitted by the Authority.
25    The Auditor General shall submit a bill to the Authority
26for costs associated with the examinations and report required

 

 

10000HB2498ham001- 26 -LRB100 03891 MJP 22700 a

1under this Section. The Authority shall reimburse in a timely
2manner.
3    (b) The Authority shall enter into an intergovernmental
4agreement with the Auditor General authorizing the Auditor
5General to, every 2 years, (i) review the financial audit of
6the Authority performed by the Authority's certified public
7accountants, (ii) perform a management audit of the Authority,
8and (iii) perform a management audit of the casino operator
9licensee. The Auditor General shall provide the Authority and
10the General Assembly with the audits and shall post on his or
11her Internet website such portions of the audit or other
12financial information as generally would be made publicly
13available for other owners licensees under the Illinois
14Gambling Act. The Auditor General shall submit a bill to the
15Authority for costs associated with the review and the audit
16required under this Section, which costs shall not exceed
17$100,000, and the Authority shall reimburse the Auditor General
18for such costs in a timely manner.
 
19    Section 1-62. Advisory committee. An Advisory Committee is
20established to monitor, review, and report on (1) the
21Authority's utilization of minority-owned business enterprises
22and female-owned business enterprises, (2) employment of
23females, and (3) employment of minorities with regard to the
24development and construction of the casino as authorized under
25Section 7 of the Illinois Gambling Act. The Authority shall

 

 

10000HB2498ham001- 27 -LRB100 03891 MJP 22700 a

1work with the Advisory Committee in accumulating necessary
2information for the Committee to submit reports, as necessary,
3to the General Assembly and to the City.
4    The Committee shall consist of 9 members as provided in
5this Section. Five members shall be selected by the Governor
6and 4 members shall be selected by the Mayor. The Governor and
7Mayor shall each appoint at least one current member of the
8General Assembly. The Advisory Committee shall meet
9periodically and shall report the information to the Mayor of
10the City and to the General Assembly by December 31st of every
11year.
12    The Advisory Committee shall be dissolved on the date that
13casino gambling operations are first conducted at a permanent
14facility under the license authorized under Section 7 of the
15Illinois Gambling Act. For the purposes of this Section, the
16terms "female" and "minority person" have the meanings provided
17in Section 2 of the Business Enterprise for Minorities,
18Females, and Persons with Disabilities Act.
 
19    Section 1-65. Acquisition of property; eminent domain
20proceedings. For the lawful purposes of this Act, the City may
21acquire, by eminent domain or by condemnation proceedings in
22the manner provided by the Eminent Domain Act, real or personal
23property or interests in real or personal property located in
24the City, and the City may convey to the Authority property so
25acquired. The acquisition of property under this Section is

 

 

10000HB2498ham001- 28 -LRB100 03891 MJP 22700 a

1declared to be for a public use.
 
2    Section 1-70. Local regulation. In addition to this Act,
3the Illinois Gambling Act, and all of the rules of the Gaming
4Board, the casino facilities and operations therein shall be
5subject to all ordinances and regulations of the City. The
6construction, development, and operation of the casino shall
7comply with all ordinances, regulations, rules, and controls of
8the City, including, but not limited to, those relating to
9zoning and planned development, building, fire prevention, and
10land use. However, the regulation of gaming operations is
11subject to the exclusive jurisdiction of the Gaming Board. The
12Gaming Board shall be responsible for the investigation for and
13issuance of all licenses required by this Act and the Illinois
14Gambling Act.
 
15    Section 1-75. Borrowing.
16    (a) The Authority may borrow money and issue bonds as
17provided in this Section. Bonds of the Authority may be issued
18to provide funds for land acquisition, site assembly and
19preparation, and the design and construction of the casino, as
20defined in the Illinois Gambling Act, all ancillary and related
21facilities comprising the casino complex, and all on-site and
22off-site infrastructure improvements required in connection
23with the development of the casino; to refund (at the time or
24in advance of any maturity or redemption) or redeem any bonds

 

 

10000HB2498ham001- 29 -LRB100 03891 MJP 22700 a

1of the Authority; to provide or increase a debt service reserve
2fund or other reserves with respect to any or all of its bonds;
3or to pay the legal, financial, administrative, bond insurance,
4credit enhancement, and other legal expenses of the
5authorization, issuance, or delivery of bonds. In this Act, the
6term "bonds" also includes notes of any kind, interim
7certificates, refunding bonds, or any other evidence of
8obligation for borrowed money issued under this Section. Bonds
9may be issued in one or more series and may be payable and
10secured either on a parity with or separately from other bonds.
11    (b) The bonds of the Authority shall be payable from one or
12more of the following sources: (i) the property or revenues of
13the Authority; (ii) revenues derived from the casino; (iii)
14revenues derived from any casino operator licensee; (iv) fees,
15bid proceeds, charges, lease payments, payments required
16pursuant to any casino management contract or other revenues
17payable to the Authority, or any receipts of the Authority; (v)
18payments by financial institutions, insurance companies, or
19others pursuant to letters or lines of credit, policies of
20insurance, or purchase agreements; (vi) investment earnings
21from funds or accounts maintained pursuant to a bond resolution
22or trust indenture; (vii) proceeds of refunding bonds; (viii)
23any other revenues derived from or payments by the City; and
24(ix) any payments by any casino operator licensee or others
25pursuant to any guaranty agreement.
26    (c) Bonds shall be authorized by a resolution of the

 

 

10000HB2498ham001- 30 -LRB100 03891 MJP 22700 a

1Authority and may be secured by a trust indenture by and
2between the Authority and a corporate trustee or trustees,
3which may be any trust company or bank having the powers of a
4trust company within or without the State. Bonds shall meet the
5following requirements:
6        (1) Bonds may bear interest payable at any time or
7    times and at any rate or rates, notwithstanding any other
8    provision of law to the contrary, and may be subject to
9    such other terms and conditions as may be provided by the
10    resolution or indenture authorizing the issuance of such
11    bonds.
12        (2) Bonds issued pursuant to this Section may be
13    payable on such dates and times as may be provided for by
14    the resolution or indenture authorizing the issuance of
15    such bonds; provided, however, that such bonds shall mature
16    no later than 30 years from the date of issuance.
17        (3) Bonds issued pursuant to this Section may be sold
18    pursuant to notice of sale and public bid or by negotiated
19    sale.
20        (4) Bonds shall be payable at a time or times, in the
21    denominations and form, including book entry form, either
22    coupon, registered, or both, and carry the registration and
23    privileges as to exchange, transfer or conversion, and
24    replacement of mutilated, lost, or destroyed bonds as the
25    resolution or trust indenture may provide.
26        (5) Bonds shall be payable in lawful money of the

 

 

10000HB2498ham001- 31 -LRB100 03891 MJP 22700 a

1    United States at a designated place.
2        (6) Bonds shall be subject to the terms of purchase,
3    payment, redemption, refunding, or refinancing that the
4    resolution or trust indenture provides.
5        (7) Bonds shall be executed by the manual or facsimile
6    signatures of the officers of the Authority designated by
7    the Board, which signatures shall be valid at delivery even
8    for one who has ceased to hold office.
9        (8) Bonds shall be sold at public or private sale in
10    the manner and upon the terms determined by the Authority.
11        (9) Bonds shall be issued in accordance with the
12    provisions of the Local Government Debt Reform Act.
13    (d) The Authority shall adopt a procurement program with
14respect to contracts relating to underwriters, bond counsel,
15financial advisors, and accountants. The program shall include
16goals for the payment of not less than 30% of the total dollar
17value of the fees from these contracts to minority-owned
18businesses and female-owned businesses as defined in the
19Business Enterprise for Minorities, Females, and Persons with
20Disabilities Act. The Authority shall conduct outreach to
21minority-owned businesses and female-owned businesses.
22Outreach shall include, but is not limited to, advertisements
23in periodicals and newspapers, mailings, and other appropriate
24media. The Authority shall submit to the General Assembly a
25comprehensive report that shall include, at a minimum, the
26details of the procurement plan, outreach efforts, and the

 

 

10000HB2498ham001- 32 -LRB100 03891 MJP 22700 a

1results of the efforts to achieve goals for the payment of
2fees.
3    (e) Subject to the Illinois Gambling Act and rules of the
4Gaming Board regarding pledging of interests in holders of
5owners licenses, any resolution or trust indenture may contain
6provisions that may be a part of the contract with the holders
7of the bonds as to the following:
8        (1) Pledging, assigning, or directing the use,
9    investment, or disposition of revenues of the Authority or
10    proceeds or benefits of any contract, including without
11    limitation any rights in any casino management contract.
12        (2) The setting aside of loan funding deposits, debt
13    service reserves, replacement or operating reserves, cost
14    of issuance accounts and sinking funds, and the regulation,
15    investment, and disposition thereof.
16        (3) Limitations on the purposes to which or the
17    investments in which the proceeds of sale of any issue of
18    bonds or the Authority's revenues and receipts may be
19    applied or made.
20        (4) Limitations on the issue of additional bonds, the
21    terms upon which additional bonds may be issued and
22    secured, the terms upon which additional bonds may rank on
23    a parity with, or be subordinate or superior to, other
24    bonds.
25        (5) The refunding, advance refunding, or refinancing
26    of outstanding bonds.

 

 

10000HB2498ham001- 33 -LRB100 03891 MJP 22700 a

1        (6) The procedure, if any, by which the terms of any
2    contract with bondholders may be altered or amended and the
3    amount of bonds and holders of which must consent thereto
4    and the manner in which consent shall be given.
5        (7) Defining the acts or omissions that shall
6    constitute a default in the duties of the Authority to
7    holders of bonds and providing the rights or remedies of
8    such holders in the event of a default, which may include
9    provisions restricting individual rights of action by
10    bondholders.
11        (8) Providing for guarantees, pledges of property,
12    letters of credit, or other security, or insurance for the
13    benefit of bondholders.
14    (f) No member of the Casino Board, nor any person executing
15the bonds, shall be liable personally on the bonds or subject
16to any personal liability by reason of the issuance of the
17bonds.
18    (g) The Authority may issue and secure bonds in accordance
19with the provisions of the Local Government Credit Enhancement
20Act.
21    (h) A pledge by the Authority of revenues and receipts as
22security for an issue of bonds or for the performance of its
23obligations under any casino management contract shall be valid
24and binding from the time when the pledge is made. The revenues
25and receipts pledged shall immediately be subject to the lien
26of the pledge without any physical delivery or further act, and

 

 

10000HB2498ham001- 34 -LRB100 03891 MJP 22700 a

1the lien of any pledge shall be valid and binding against any
2person having any claim of any kind in tort, contract, or
3otherwise against the Authority, irrespective of whether the
4person has notice. No resolution, trust indenture, management
5agreement or financing statement, continuation statement, or
6other instrument adopted or entered into by the Authority need
7be filed or recorded in any public record other than the
8records of the Authority in order to perfect the lien against
9third persons, regardless of any contrary provision of law.
10    (i) Bonds that are being paid or retired by issuance, sale,
11or delivery of bonds, and bonds for which sufficient funds have
12been deposited with the paying agent or trustee to provide for
13payment of principal and interest thereon, and any redemption
14premium, as provided in the authorizing resolution, shall not
15be considered outstanding for the purposes of this subsection.
16    (j) The bonds of the Authority shall not be indebtedness of
17the State. The bonds of the Authority are not general
18obligations of the State and are not secured by a pledge of the
19full faith and credit of the State and the holders of bonds of
20the Authority may not require the application of State revenues
21or funds to the payment of bonds of the Authority. The
22foregoing non-recourse language must be printed in bold-face
23type on the face of the bonds and in the preliminary and final
24official statements on the bonds.
25    (k) The State of Illinois pledges and agrees with the
26owners of the bonds that it will not limit or alter the rights

 

 

10000HB2498ham001- 35 -LRB100 03891 MJP 22700 a

1and powers vested in the Authority by this Act so as to impair
2the terms of any contract made by the Authority with the owners
3or in any way impair the rights and remedies of the owners
4until the bonds, together with interest on them, and all costs
5and expenses in connection with any action or proceedings by or
6on behalf of the owners, are fully met and discharged. The
7Authority is authorized to include this pledge and agreement in
8any contract with the owners of bonds issued under this
9Section.
10    (l) No person holding an elective office in the City, in
11Cook County, or in this State, holding a seat in the General
12Assembly, or serving as a board member, trustee, officer, or
13employee of the Authority, including the spouse of that person,
14may receive a legal, banking, consulting, or other fee related
15to the issuance of bonds. This prohibition shall also apply to
16a company or firm that employs a person holding an elective
17office in the City, in Cook County, or in this State, holding a
18seat in the General Assembly, or serving as a board member,
19trustee, officer, or employee of the Authority, including the
20spouse of that person, if the person or his or her spouse has
21greater than 7.5% ownership of the company or firm.
 
22    Section 1-85. Derivative products. With respect to all or
23part of any issue of its bonds, the Authority may enter into
24agreements or contracts with any necessary or appropriate
25person, which will have the benefit of providing to the

 

 

10000HB2498ham001- 36 -LRB100 03891 MJP 22700 a

1Authority an interest rate basis, cash flow basis, or other
2basis different from that provided in the bonds for the payment
3of interest. Such agreements or contracts may include, without
4limitation, agreements or contracts commonly known as
5"interest rate swap agreements", "forward payment conversion
6agreements", "futures", "options", "puts", or "calls" and
7agreements or contracts providing for payments based on levels
8of or changes in interest rates, agreements or contracts to
9exchange cash flows or a series of payments, or to hedge
10payment, rate spread, or similar exposure. Any such agreement
11or contract shall be solely an obligation or indebtedness of
12the Authority and shall not be an obligation or indebtedness of
13the State, nor shall any party thereto have any recourse
14against the State in connection with the agreement or contract.
 
15    Section 1-90. Legality for investment. The State of
16Illinois, all governmental entities, all public officers,
17banks, bankers, trust companies, savings banks and
18institutions, building and loan associations, savings and loan
19associations, investment companies, and other persons carrying
20on a banking business, insurance companies, insurance
21associations, and other persons carrying on an insurance
22business, and all executors, administrators, guardians,
23trustees, and other fiduciaries may legally invest any sinking
24funds, moneys, or other funds belonging to them or within their
25control in any bonds issued under this Act. However, nothing in

 

 

10000HB2498ham001- 37 -LRB100 03891 MJP 22700 a

1this Section shall be construed as relieving any person or
2entity from any duty of exercising reasonable care in selecting
3securities for purchase or investment.
 
4    Section 1-105. Budgets and reporting.
5    (a) The Casino Board shall annually adopt a budget for each
6fiscal year. The budget may be modified from time to time in
7the same manner and upon the same vote as it may be adopted.
8The budget shall include the Authority's available funds and
9estimated revenues and shall provide for payment of its
10obligations and estimated expenditures for the fiscal year,
11including, without limitation, expenditures for
12administration, operation, maintenance and repairs, debt
13service, and deposits into reserve and other funds and capital
14projects.
15    (b) The Casino Board shall annually cause the finances of
16the Authority to be audited by a firm of certified public
17accountants selected by the Casino Board in accordance with the
18rules of the Gaming Board and post on the Authority's Internet
19website such financial information as is required to be posted
20by all other owners licensees under the Illinois Gambling Act.
21    (c) The Casino Board shall, for each fiscal year, prepare
22an annual report setting forth information concerning its
23activities in the fiscal year and the status of the development
24of the casino. The annual report shall include financial
25information of the Authority consistent with that which is

 

 

10000HB2498ham001- 38 -LRB100 03891 MJP 22700 a

1required for all other owners licensees under the Illinois
2Gambling Act, the budget for the succeeding fiscal year, and
3the current capital plan as of the date of the report. Copies
4of the annual report shall be made available to persons who
5request them and shall be submitted not later than 120 days
6after the end of the Authority's fiscal year or, if the audit
7of the Authority's financial statements is not completed within
8120 days after the end of the Authority's fiscal year, as soon
9as practical after completion of the audit, to the Governor,
10the Mayor, the General Assembly, and the Commission on
11Government Forecasting and Accountability.
 
12    Section 1-110. Deposit and withdrawal of funds.
13    (a) All funds deposited by the Authority in any bank or
14savings and loan association shall be placed in the name of the
15Authority and shall be withdrawn or paid out only by check or
16draft upon the bank or savings and loan association, signed by
172 officers or employees designated by the Casino Board.
18Notwithstanding any other provision of this Section, the Casino
19Board may designate any of its members or any officer or
20employee of the Authority to authorize the wire transfer of
21funds deposited by the secretary-treasurer of funds in a bank
22or savings and loan association for the payment of payroll and
23employee benefits-related expenses.
24    No bank or savings and loan association shall receive
25public funds as permitted by this Section unless it has

 

 

10000HB2498ham001- 39 -LRB100 03891 MJP 22700 a

1complied with the requirements established pursuant to Section
26 of the Public Funds Investment Act.
3    (b) If any officer or employee whose signature appears upon
4any check or draft issued pursuant to this Act ceases (after
5attaching his signature) to hold his or her office before the
6delivery of such a check or draft to the payee, his or her
7signature shall nevertheless be valid and sufficient for all
8purposes with the same effect as if he or she had remained in
9office until delivery thereof.
 
10    Section 1-112. Contracts with the Authority or casino
11operator licensee; disclosure requirements.
12    (a) A bidder, respondent, offeror, or contractor for
13contracts with the Authority or casino operator licensee shall
14disclose the identity of all officers and directors and every
15owner, beneficiary, or person with beneficial interest of more
16than 1% or shareholder entitled to receive more than 1% of the
17total distributable income of any corporation having any
18interest in the contract or in the bidder, respondent, offeror,
19or contractor. The disclosure shall be in writing and attested
20to by an owner, trustee, corporate official, or agent. If stock
21in a corporation is publicly traded and there is no readily
22known individual having greater than a 1% interest, then a
23statement to that effect attested to by an officer or agent of
24the corporation shall fulfill the disclosure statement
25requirement of this Section. A bidder, respondent, offeror, or

 

 

10000HB2498ham001- 40 -LRB100 03891 MJP 22700 a

1contractor shall notify the Authority of any changes in
2officers, directors, ownership, or individuals having a
3beneficial interest of more than 1%. Notwithstanding the
4provisions of this subsection (a), the Gaming Board may adopt
5rules in connection with contractors for contracts with the
6Authority or the casino operator licensee.
7    (b) A bidder, respondent, offeror, or contractor for
8contracts with an annual value of $25,000 or more or for a
9period to exceed one year shall disclose all political
10contributions of the bidder, respondent, offeror, or
11contractor and any affiliated person or entity. Disclosure
12shall include at least the names and addresses of the
13contributors and the dollar amounts of any contributions to any
14political committee made within the previous 2 years. The
15disclosure must be submitted to the Gaming Board with a copy of
16the contract. All such disclosures shall be posted on the
17websites of the Authority and the Gaming Board.
18    (c) As used in this Section:
19    "Contribution" means contribution as defined in Section
209-1.4 of the Election Code.
21    "Affiliated person" means (i) any person with any ownership
22interest or distributive share of the bidding, responding, or
23contracting entity in excess of 1%, (ii) executive employees of
24the bidding, responding, or contracting entity, and (iii) the
25spouse, minor children, and parents of any such persons.
26    "Affiliated entity" means (i) any parent or subsidiary of

 

 

10000HB2498ham001- 41 -LRB100 03891 MJP 22700 a

1the bidding or contracting entity, (ii) any member of the same
2unitary business group, or (iii) any political committee for
3which the bidding, responding, or contracting entity is the
4sponsoring entity.
5    (d) The Gaming Board may direct the Authority or a casino
6operator licensee to void a contract if a violation of this
7Section occurs. The Authority may direct a casino operator
8licensee to void a contract if a violation of this Section
9occurs.
10    (e) All contracts pertaining to the actual operation of the
11casino and related gaming activities shall be entered into by
12the casino operator licensee and not the Authority and shall be
13subject to the regulation, oversight, and approval of the
14Gaming Board, applying the same regulation, oversight, and
15approval requirements as would be applied to any other owners
16licensee under the Illinois Gambling Act.
 
17    Section 1-115. Purchasing.
18    (a) The Casino Board shall designate an officer of the
19Authority to serve as the Chief Procurement Officer for the
20Authority. The Chief Procurement Officer shall have all powers
21and duties set forth in Section 15 of Division 10 of Article 8
22of the Illinois Municipal Code. Except as otherwise provided in
23this Section, the Chief Procurement Officer of the Authority
24shall conduct procurements on behalf of the Authority subject
25to Title 2, Chapter 92 of the Municipal Code of Chicago, which

 

 

10000HB2498ham001- 42 -LRB100 03891 MJP 22700 a

1by its terms incorporates Division 10 of Article 8 of the
2Illinois Municipal Code.
3    (b) All contracts for amounts greater than $25,000 must be
4approved by the Casino Board and executed by the chairperson of
5the Casino Board and executive director of the Authority.
6Contracts for amounts of $25,000 or less may be approved and
7executed by the Chief Procurement Officer for the Authority and
8executive director of the Authority, with approval by the chief
9legal counsel for the Authority as to form and legality.
10    (c) All construction contracts and contracts for supplies,
11materials, equipment, and services for amounts greater than
12$25,000 shall be let by a competitive selection process to the
13lowest responsible proposer, after advertising for proposals,
14except for the following:
15        (1) when repair parts, accessories, equipment, or
16    services are required for equipment or services previously
17    furnished or contracted for;
18        (2) when services such as water, light, heat, power,
19    telephone (other than long-distance service), or telegraph
20    are required;
21        (3) casino management contracts, which shall be
22    awarded as set forth in Section 1-45 of this Act;
23        (4) contracts where there is only one economically
24    feasible source;
25        (5) when a purchase is needed on an immediate,
26    emergency basis because there exists a threat to public

 

 

10000HB2498ham001- 43 -LRB100 03891 MJP 22700 a

1    health or public safety, or when immediate expenditure is
2    necessary for repairs to Authority property in order to
3    protect against further loss of or damage to Authority
4    property, to prevent or minimize serious disruption in
5    Authority services or to ensure the integrity of Authority
6    records;
7        (6) contracts for professional services other than for
8    management of the casino, except such contracts described
9    in subsection (d) of this Section; and
10        (7) contracts for the use, purchase, delivery,
11    movement, or installation of (i) data processing
12    equipment, software, and services and (ii)
13    telecommunications equipment, software, and services.
14    (d) Contracts for professional services for a term of more
15than one year or contracts that may require payment in excess
16of $25,000 in one year shall be let by a competitive bidding
17process to the most highly qualified firm that agrees to
18compensation and other terms of engagement that are both
19reasonable and acceptable to the Casino Board.
20    (e) All contracts involving less than $25,000 shall be let
21by competitive selection process whenever possible, and in any
22event in a manner calculated to ensure the best interests of
23the public.
24    (f) In determining the responsibility of any proposer, the
25Authority may take into account the proposer's (or an
26individual having a beneficial interest, directly or

 

 

10000HB2498ham001- 44 -LRB100 03891 MJP 22700 a

1indirectly, of more than 1% in such proposing entity) past
2record of dealings with the Authority, the proposer's
3experience, adequacy of equipment, and ability to complete
4performance within the time set, and other factors besides
5financial responsibility. No such contract shall be awarded to
6any proposer other than the lowest proposer (in case of
7purchase or expenditure) unless authorized or approved by a
8vote of at least 3 members of the Casino Board and such action
9is accompanied by a written statement setting forth the reasons
10for not awarding the contract to the highest or lowest
11proposer, as the case may be. The statement shall be kept on
12file in the principal office of the Authority and open to
13public inspection.
14    (g) The Authority shall have the right to reject all
15proposals and to re-advertise for proposals. If after any such
16re-advertisement, no responsible and satisfactory proposals,
17within the terms of the re-advertisement, is received, the
18Authority may award such contract without competitive
19selection. The contract must not be less advantageous to the
20Authority than any valid proposal received pursuant to
21advertisement.
22    (h) Advertisements for proposals and re-proposals shall be
23published at least once in a daily newspaper of general
24circulation published in the City at least 10 calendar days
25before the time for receiving proposals and in an online
26bulletin published on the Authority's website. Such

 

 

10000HB2498ham001- 45 -LRB100 03891 MJP 22700 a

1advertisements shall state the time and place for receiving and
2opening of proposals and, by reference to plans and
3specifications on file at the time of the first publication or
4in the advertisement itself, shall describe the character of
5the proposed contract in sufficient detail to fully advise
6prospective proposers of their obligations and to ensure free
7and open competitive selection.
8    (i) All proposals in response to advertisements shall be
9sealed and shall be publicly opened by the Authority. All
10proposers shall be entitled to be present in person or by
11representatives. Cash or a certified or satisfactory cashier's
12check, as a deposit of good faith, in a reasonable amount to be
13fixed by the Authority before advertising for proposals, shall
14be required with the proposal. A bond for faithful performance
15of the contract with surety or sureties satisfactory to the
16Authority and adequate insurance may be required in reasonable
17amounts to be fixed by the Authority before advertising for
18proposals.
19    (j) The contract shall be awarded as promptly as possible
20after the opening of proposals. The proposal of the successful
21proposer, as well as the bids of the unsuccessful proposers,
22shall be placed on file and be open to public inspection
23subject to the exemptions from disclosure provided under
24Section 7 of the Freedom of Information Act. All proposals
25shall be void if any disclosure of the terms of any proposals
26in response to an advertisement is made or permitted to be made

 

 

10000HB2498ham001- 46 -LRB100 03891 MJP 22700 a

1by the Authority before the time fixed for opening proposals.
2    (k) Notice of each and every contract that is offered,
3including renegotiated contracts and change orders, shall be
4published in an online bulletin. The online bulletin must
5include at least the date first offered, the date submission of
6offers is due, the location that offers are to be submitted to,
7a brief purchase description, the method of source selection,
8information of how to obtain a comprehensive purchase
9description and any disclosure and contract forms, and
10encouragement to prospective vendors to hire qualified
11veterans, as defined by Section 45-67 of the Illinois
12Procurement Code, and Illinois residents discharged from any
13Illinois adult correctional center subject to Gaming Board
14licensing and eligibility rules. Notice of each and every
15contract that is let or awarded, including renegotiated
16contracts and change orders, shall be published in the online
17bulletin and must include at least all of the information
18specified in this subsection (k), as well as the name of the
19successful responsible proposer or offeror, the contract
20price, and the number of unsuccessful responsive proposers and
21any other disclosure specified in this Section. This notice
22must be posted in the online electronic bulletin prior to
23execution of the contract.
 
24    Section 1-130. Affirmative action and equal opportunity
25obligations of Authority.

 

 

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1    (a) The Authority is subject to the requirements of Article
2IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
3inclusive) of the Chicago Municipal Code, as now or hereafter
4amended, renumbered, or succeeded, concerning a Minority-Owned
5and Women-Owned Business Enterprise Procurement Program for
6construction contracts, and Section 2-92-420 et seq. of the
7Chicago Municipal Code, as now or hereafter amended,
8renumbered, or succeeded, concerning a Minority-Owned and
9Women-Owned Business Enterprise Procurement Program.
10    (b) The Authority is authorized to enter into agreements
11with contractors' associations, labor unions, and the
12contractors working on the development of the casino to
13establish an apprenticeship preparedness training program to
14provide for an increase in the number of minority and female
15journeymen and apprentices in the building trades and to enter
16into agreements with community college districts or other
17public or private institutions to provide readiness training.
18The Authority is further authorized to enter into contracts
19with public and private educational institutions and persons in
20the gaming, entertainment, hospitality, and tourism industries
21to provide training for employment in those industries.
 
22    Section 1-135. Transfer of interest. Neither the Authority
23nor the City may sell, lease, rent, transfer, exchange, or
24otherwise convey any interest that they have in the casino
25without prior approval of the General Assembly.
 

 

 

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1    Section 1-140. Home rule. The regulation and licensing of
2casinos and casino gaming, casino gaming facilities, and casino
3operator licensees under this Act are exclusive powers and
4functions of the State. A home rule unit may not regulate or
5license casinos, casino gaming, casino gaming facilities, or
6casino operator licensees under this Act, except as provided
7under this Act. This Section is a denial and limitation of home
8rule powers and functions under subsection (h) of Section 6 of
9Article VII of the Illinois Constitution.
 
10
ARTICLE 90.

 
11    Section 90-1. Findings. The General Assembly makes all of
12the following findings:
13        (1) That the cumulative reduction to pre-K through 12
14    education funding since 2009 is approximately
15    $861,000,000.
16        (2) That general state aid to Illinois common schools
17    has been underfunded as a result of budget cuts, resulting
18    in pro-rated payments to school districts that are less
19    than the foundational level of $6,119 per pupil, which
20    represents the minimum each pupil needs to be educated.
21        (3) That a significant infusion of new revenue is
22    necessary in order to fully fund the foundation level and
23    to maintain and support education in Illinois.

 

 

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1        (4) That the decline of the Illinois horse racing and
2    breeding program, a $2.5 billion industry, would be
3    reversed if this amendatory Act of the 100th General
4    Assembly would be enacted.
5        (5) That the Illinois horse racing industry is on the
6    verge of extinction due to fierce competition from fully
7    developed horse racing and gaming operations in other
8    states.
9        (6) That allowing the State's horse racing venues,
10    currently licensed gaming destinations, to maximize their
11    capacities with gaming machines, would generate up to $120
12    million to $200 million for the State in the form of extra
13    licensing fees, plus an additional $100 million to $300
14    million in recurring annual tax revenue for the State to
15    help ensure that school, road, and other building projects
16    promised under the capital plan occur on schedule.
17        (7) That Illinois agriculture and other businesses
18    that support and supply the horse racing industry, already
19    a sector that employs over 37,000 Illinoisans, also stand
20    to substantially benefit and would be much more likely to
21    create additional jobs should Illinois horse racing once
22    again become competitive with other states.
23        (8) That by keeping these projects on track, the State
24    can be sure that significant job and economic growth will
25    in fact result from the previously enacted legislation.
26        (9) That gaming machines at Illinois horse racing

 

 

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1    tracks would create an estimated 1,200 to 1,500 permanent
2    jobs, and an estimated capital investment of up to $200
3    million to $400 million at these race tracks would prompt
4    additional trade organization jobs necessary to construct
5    new facilities or remodel race tracks to operate electronic
6    gaming.
 
7    Section 90-3. The State Officials and Employees Ethics Act
8is amended by changing Sections 5-45 and 20-10 as follows:
 
9    (5 ILCS 430/5-45)
10    Sec. 5-45. Procurement; revolving door prohibition.
11    (a) No former officer, member, or State employee, or spouse
12or immediate family member living with such person, shall,
13within a period of one year immediately after termination of
14State employment, knowingly accept employment or receive
15compensation or fees for services from a person or entity if
16the officer, member, or State employee, during the year
17immediately preceding termination of State employment,
18participated personally and substantially in the award of State
19contracts, or the issuance of State contract change orders,
20with a cumulative value of $25,000 or more to the person or
21entity, or its parent or subsidiary.
22    (b) No former officer of the executive branch or State
23employee of the executive branch with regulatory or licensing
24authority, or spouse or immediate family member living with

 

 

10000HB2498ham001- 51 -LRB100 03891 MJP 22700 a

1such person, shall, within a period of one year immediately
2after termination of State employment, knowingly accept
3employment or receive compensation or fees for services from a
4person or entity if the officer or State employee, during the
5year immediately preceding termination of State employment,
6participated personally and substantially in making a
7regulatory or licensing decision that directly applied to the
8person or entity, or its parent or subsidiary.
9    (c) Within 6 months after the effective date of this
10amendatory Act of the 96th General Assembly, each executive
11branch constitutional officer and legislative leader, the
12Auditor General, and the Joint Committee on Legislative Support
13Services shall adopt a policy delineating which State positions
14under his or her jurisdiction and control, by the nature of
15their duties, may have the authority to participate personally
16and substantially in the award of State contracts or in
17regulatory or licensing decisions. The Governor shall adopt
18such a policy for all State employees of the executive branch
19not under the jurisdiction and control of any other executive
20branch constitutional officer.
21    The policies required under subsection (c) of this Section
22shall be filed with the appropriate ethics commission
23established under this Act or, for the Auditor General, with
24the Office of the Auditor General.
25    (d) Each Inspector General shall have the authority to
26determine that additional State positions under his or her

 

 

10000HB2498ham001- 52 -LRB100 03891 MJP 22700 a

1jurisdiction, not otherwise subject to the policies required by
2subsection (c) of this Section, are nonetheless subject to the
3notification requirement of subsection (f) below due to their
4involvement in the award of State contracts or in regulatory or
5licensing decisions.
6    (e) The Joint Committee on Legislative Support Services,
7the Auditor General, and each of the executive branch
8constitutional officers and legislative leaders subject to
9subsection (c) of this Section shall provide written
10notification to all employees in positions subject to the
11policies required by subsection (c) or a determination made
12under subsection (d): (1) upon hiring, promotion, or transfer
13into the relevant position; and (2) at the time the employee's
14duties are changed in such a way as to qualify that employee.
15An employee receiving notification must certify in writing that
16the person was advised of the prohibition and the requirement
17to notify the appropriate Inspector General in subsection (f).
18    (f) Any State employee in a position subject to the
19policies required by subsection (c) or to a determination under
20subsection (d), but who does not fall within the prohibition of
21subsection (h) below, who is offered non-State employment
22during State employment or within a period of one year
23immediately after termination of State employment shall, prior
24to accepting such non-State employment, notify the appropriate
25Inspector General. Within 10 calendar days after receiving
26notification from an employee in a position subject to the

 

 

10000HB2498ham001- 53 -LRB100 03891 MJP 22700 a

1policies required by subsection (c), such Inspector General
2shall make a determination as to whether the State employee is
3restricted from accepting such employment by subsection (a) or
4(b). In making a determination, in addition to any other
5relevant information, an Inspector General shall assess the
6effect of the prospective employment or relationship upon
7decisions referred to in subsections (a) and (b), based on the
8totality of the participation by the former officer, member, or
9State employee in those decisions. A determination by an
10Inspector General must be in writing, signed and dated by the
11Inspector General, and delivered to the subject of the
12determination within 10 calendar days or the person is deemed
13eligible for the employment opportunity. For purposes of this
14subsection, "appropriate Inspector General" means (i) for
15members and employees of the legislative branch, the
16Legislative Inspector General; (ii) for the Auditor General and
17employees of the Office of the Auditor General, the Inspector
18General provided for in Section 30-5 of this Act; and (iii) for
19executive branch officers and employees, the Inspector General
20having jurisdiction over the officer or employee. Notice of any
21determination of an Inspector General and of any such appeal
22shall be given to the ultimate jurisdictional authority, the
23Attorney General, and the Executive Ethics Commission.
24    (g) An Inspector General's determination regarding
25restrictions under subsection (a) or (b) may be appealed to the
26appropriate Ethics Commission by the person subject to the

 

 

10000HB2498ham001- 54 -LRB100 03891 MJP 22700 a

1decision or the Attorney General no later than the 10th
2calendar day after the date of the determination.
3    On appeal, the Ethics Commission or Auditor General shall
4seek, accept, and consider written public comments regarding a
5determination. In deciding whether to uphold an Inspector
6General's determination, the appropriate Ethics Commission or
7Auditor General shall assess, in addition to any other relevant
8information, the effect of the prospective employment or
9relationship upon the decisions referred to in subsections (a)
10and (b), based on the totality of the participation by the
11former officer, member, or State employee in those decisions.
12The Ethics Commission shall decide whether to uphold an
13Inspector General's determination within 10 calendar days or
14the person is deemed eligible for the employment opportunity.
15    (h) The following officers, members, or State employees
16shall not, within a period of one year immediately after
17termination of office or State employment, knowingly accept
18employment or receive compensation or fees for services from a
19person or entity if the person or entity or its parent or
20subsidiary, during the year immediately preceding termination
21of State employment, was a party to a State contract or
22contracts with a cumulative value of $25,000 or more involving
23the officer, member, or State employee's State agency, or was
24the subject of a regulatory or licensing decision involving the
25officer, member, or State employee's State agency, regardless
26of whether he or she participated personally and substantially

 

 

10000HB2498ham001- 55 -LRB100 03891 MJP 22700 a

1in the award of the State contract or contracts or the making
2of the regulatory or licensing decision in question:
3        (1) members or officers;
4        (2) members of a commission or board created by the
5    Illinois Constitution;
6        (3) persons whose appointment to office is subject to
7    the advice and consent of the Senate;
8        (4) the head of a department, commission, board,
9    division, bureau, authority, or other administrative unit
10    within the government of this State;
11        (5) chief procurement officers, State purchasing
12    officers, and their designees whose duties are directly
13    related to State procurement; and
14        (6) chiefs of staff, deputy chiefs of staff, associate
15    chiefs of staff, assistant chiefs of staff, and deputy
16    governors; .
17        (7) employees of the Illinois Racing Board; and
18        (8) employees of the Illinois Gaming Board.
19    (i) For the purposes of this Section, with respect to
20officers or employees of a regional transit board, as defined
21in this Act, the phrase "person or entity" does not include:
22(i) the United States government, (ii) the State, (iii)
23municipalities, as defined under Article VII, Section 1 of the
24Illinois Constitution, (iv) units of local government, as
25defined under Article VII, Section 1 of the Illinois
26Constitution, or (v) school districts.

 

 

10000HB2498ham001- 56 -LRB100 03891 MJP 22700 a

1(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
 
2    (5 ILCS 430/20-10)
3    Sec. 20-10. Offices of Executive Inspectors General.
4    (a) Six Five independent Offices of the Executive Inspector
5General are created, one each for the Governor, the Attorney
6General, the Secretary of State, the Comptroller, and the
7Treasurer and one for gaming activities. Each Office shall be
8under the direction and supervision of an Executive Inspector
9General and shall be a fully independent office with separate
10appropriations.
11    (b) The Governor, Attorney General, Secretary of State,
12Comptroller, and Treasurer shall each appoint an Executive
13Inspector General, and the Governor shall appoint an Executive
14Inspector General for gaming activities. Each appointment must
15be made without regard to political affiliation and solely on
16the basis of integrity and demonstrated ability. Appointments
17shall be made by and with the advice and consent of the Senate
18by three-fifths of the elected members concurring by record
19vote. Any nomination not acted upon by the Senate within 60
20session days of the receipt thereof shall be deemed to have
21received the advice and consent of the Senate. If, during a
22recess of the Senate, there is a vacancy in an office of
23Executive Inspector General, the appointing authority shall
24make a temporary appointment until the next meeting of the
25Senate when the appointing authority shall make a nomination to

 

 

10000HB2498ham001- 57 -LRB100 03891 MJP 22700 a

1fill that office. No person rejected for an office of Executive
2Inspector General shall, except by the Senate's request, be
3nominated again for that office at the same session of the
4Senate or be appointed to that office during a recess of that
5Senate.
6    Nothing in this Article precludes the appointment by the
7Governor, Attorney General, Secretary of State, Comptroller,
8or Treasurer of any other inspector general required or
9permitted by law. The Governor, Attorney General, Secretary of
10State, Comptroller, and Treasurer each may appoint an existing
11inspector general as the Executive Inspector General required
12by this Article, provided that such an inspector general is not
13prohibited by law, rule, jurisdiction, qualification, or
14interest from serving as the Executive Inspector General
15required by this Article. An appointing authority may not
16appoint a relative as an Executive Inspector General.
17    Each Executive Inspector General shall have the following
18qualifications:
19        (1) has not been convicted of any felony under the laws
20    of this State, another State, or the United States;
21        (2) has earned a baccalaureate degree from an
22    institution of higher education; and
23        (3) has 5 or more years of cumulative service (A) with
24    a federal, State, or local law enforcement agency, at least
25    2 years of which have been in a progressive investigatory
26    capacity; (B) as a federal, State, or local prosecutor; (C)

 

 

10000HB2498ham001- 58 -LRB100 03891 MJP 22700 a

1    as a senior manager or executive of a federal, State, or
2    local agency; (D) as a member, an officer, or a State or
3    federal judge; or (E) representing any combination of (A)
4    through (D).
5    The term of each initial Executive Inspector General shall
6commence upon qualification and shall run through June 30,
72008. The initial appointments shall be made within 60 days
8after the effective date of this Act.
9    After the initial term, each Executive Inspector General
10shall serve for 5-year terms commencing on July 1 of the year
11of appointment and running through June 30 of the fifth
12following year. An Executive Inspector General may be
13reappointed to one or more subsequent terms.
14    A vacancy occurring other than at the end of a term shall
15be filled by the appointing authority only for the balance of
16the term of the Executive Inspector General whose office is
17vacant.
18    Terms shall run regardless of whether the position is
19filled.
20    (c) The Executive Inspector General appointed by the
21Attorney General shall have jurisdiction over the Attorney
22General and all officers and employees of, and vendors and
23others doing business with, State agencies within the
24jurisdiction of the Attorney General. The Executive Inspector
25General appointed by the Secretary of State shall have
26jurisdiction over the Secretary of State and all officers and

 

 

10000HB2498ham001- 59 -LRB100 03891 MJP 22700 a

1employees of, and vendors and others doing business with, State
2agencies within the jurisdiction of the Secretary of State. The
3Executive Inspector General appointed by the Comptroller shall
4have jurisdiction over the Comptroller and all officers and
5employees of, and vendors and others doing business with, State
6agencies within the jurisdiction of the Comptroller. The
7Executive Inspector General appointed by the Treasurer shall
8have jurisdiction over the Treasurer and all officers and
9employees of, and vendors and others doing business with, State
10agencies within the jurisdiction of the Treasurer. The
11Executive Inspector General appointed by the Governor shall
12have jurisdiction over (i) the Governor, (ii) the Lieutenant
13Governor, (iii) all officers and employees of, and vendors and
14others doing business with, executive branch State agencies
15under the jurisdiction of the Executive Ethics Commission and
16not within the jurisdiction of the Attorney General, the
17Secretary of State, the Comptroller, or the Treasurer, or the
18Executive Inspector General for gaming activities, and (iv) all
19board members and employees of the Regional Transit Boards and
20all vendors and others doing business with the Regional Transit
21Boards. The Executive Inspector General for gaming activities
22appointed by the Governor has jurisdiction over the Illinois
23Gaming Board, all officers and employees of the Illinois Gaming
24Board, and all activities of the Illinois Gaming Board.
25    The jurisdiction of each Executive Inspector General is to
26investigate allegations of fraud, waste, abuse, mismanagement,

 

 

10000HB2498ham001- 60 -LRB100 03891 MJP 22700 a

1misconduct, nonfeasance, misfeasance, malfeasance, or
2violations of this Act or violations of other related laws and
3rules.
4    (d) The compensation for each Executive Inspector General
5shall be determined by the Executive Ethics Commission and
6shall be made from appropriations made to the Comptroller for
7this purpose. Subject to Section 20-45 of this Act, each
8Executive Inspector General has full authority to organize his
9or her Office of the Executive Inspector General, including the
10employment and determination of the compensation of staff, such
11as deputies, assistants, and other employees, as
12appropriations permit. A separate appropriation shall be made
13for each Office of Executive Inspector General.
14    (e) No Executive Inspector General or employee of the
15Office of the Executive Inspector General may, during his or
16her term of appointment or employment:
17        (1) become a candidate for any elective office;
18        (2) hold any other elected or appointed public office
19    except for appointments on governmental advisory boards or
20    study commissions or as otherwise expressly authorized by
21    law;
22        (3) be actively involved in the affairs of any
23    political party or political organization; or
24        (4) advocate for the appointment of another person to
25    an appointed or elected office or position or actively
26    participate in any campaign for any elective office.

 

 

10000HB2498ham001- 61 -LRB100 03891 MJP 22700 a

1    In this subsection an appointed public office means a
2position authorized by law that is filled by an appointing
3authority as provided by law and does not include employment by
4hiring in the ordinary course of business.
5    (e-1) No Executive Inspector General or employee of the
6Office of the Executive Inspector General may, for one year
7after the termination of his or her appointment or employment:
8        (1) become a candidate for any elective office;
9        (2) hold any elected public office; or
10        (3) hold any appointed State, county, or local judicial
11    office.
12    (e-2) The requirements of item (3) of subsection (e-1) may
13be waived by the Executive Ethics Commission.
14    (f) An Executive Inspector General may be removed only for
15cause and may be removed only by the appointing constitutional
16officer. At the time of the removal, the appointing
17constitutional officer must report to the Executive Ethics
18Commission the justification for the removal.
19(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
 
20    Section 90-5. The Alcoholism and Other Drug Abuse and
21Dependency Act is amended by changing Section 5-20 as follows:
 
22    (20 ILCS 301/5-20)
23    Sec. 5-20. Compulsive gambling program.
24    (a) Subject to appropriation, the Department shall

 

 

10000HB2498ham001- 62 -LRB100 03891 MJP 22700 a

1establish a program for public education, research, and
2training regarding problem and compulsive gambling and the
3treatment and prevention of problem and compulsive gambling.
4Subject to specific appropriation for these stated purposes,
5the program must include all of the following:
6        (1) Establishment and maintenance of a toll-free "800"
7    telephone number to provide crisis counseling and referral
8    services to families experiencing difficulty as a result of
9    problem or compulsive gambling.
10        (2) Promotion of public awareness regarding the
11    recognition and prevention of problem and compulsive
12    gambling.
13        (3) Facilitation, through in-service training and
14    other means, of the availability of effective assistance
15    programs for problem and compulsive gamblers.
16        (4) Conducting studies to identify adults and
17    juveniles in this State who are, or who are at risk of
18    becoming, problem or compulsive gamblers.
19    (b) Subject to appropriation, the Department shall either
20establish and maintain the program or contract with a private
21or public entity for the establishment and maintenance of the
22program. Subject to appropriation, either the Department or the
23private or public entity shall implement the toll-free
24telephone number, promote public awareness, and conduct
25in-service training concerning problem and compulsive
26gambling.

 

 

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1    (c) Subject to appropriation, the Department shall produce
2and supply the signs specified in Section 10.7 of the Illinois
3Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
41975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
5of the Charitable Games Act, and Section 13.1 of the Illinois
6Riverboat Gambling Act.
7(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
8    Section 90-6. The Department of Commerce and Economic
9Opportunity Law of the Civil Administrative Code of Illinois is
10amended by adding Sections 605-530 and 605-535 as follows:
 
11    (20 ILCS 605/605-530 new)
12    Sec. 605-530. The Depressed Communities Economic
13Development Board.
14    (a) The Depressed Communities Economic Development Board
15is created as an advisory board within the Department of
16Commerce and Economic Opportunity. The Board shall consist of
17the following members:
18        (1) 3 members appointed by the Governor, one of whom
19    shall be appointed to serve an initial term of one year and
20    2 of whom shall be appointed to serve an initial term of 2
21    years;
22        (2) 2 members appointed by the Speaker of the House of
23    Representatives, one of whom shall be appointed to serve an
24    initial term of one year and one of whom shall be appointed

 

 

10000HB2498ham001- 64 -LRB100 03891 MJP 22700 a

1    to serve an initial term of 2 years;
2        (3) 2 members appointed by the President of the Senate,
3    one of whom shall be appointed to serve an initial term of
4    one year and one of whom shall be appointed to serve an
5    initial term of 2 years;
6        (4) 2 members appointed by the Minority Leader of the
7    House of Representatives, one of whom shall be appointed to
8    serve an initial term of one year and one of whom shall be
9    appointed to serve an initial term of 2 years; and
10        (5) 2 members appointed by the Minority Leader of the
11    Senate, one of whom shall be appointed to serve an initial
12    term of one year and one of whom shall be appointed to
13    serve an initial term of 2 years.
14    The members of the Board shall elect a member to serve as
15chair of the Board. The members of the Board shall reflect the
16composition of the Illinois population with regard to ethnic
17and racial composition.
18    After the initial terms, each member shall be appointed to
19serve a term of 2 years and until his or her successor has been
20appointed and assumes office. If a vacancy occurs in the Board
21membership, then the vacancy shall be filled in the same manner
22as the initial appointment. No member of the Board shall, at
23the time of his or her appointment or within 2 years before the
24appointment, hold elected office or be appointed to a State
25board, commission, or agency. All Board members are subject to
26the State Officials and Employees Ethics Act.

 

 

10000HB2498ham001- 65 -LRB100 03891 MJP 22700 a

1    (b) Board members shall serve without compensation, but may
2be reimbursed for their reasonable travel expenses from funds
3available for that purpose. The Department of Commerce and
4Economic Opportunity shall provide staff and administrative
5support services to the Board.
6    (c) The Board must make recommendations, which must be
7approved by a majority of the Board, to the Department of
8Commerce and Economic Opportunity concerning the award of
9grants from amounts appropriated to the Department from the
10Depressed Communities Economic Development Fund, a special
11fund created in the State treasury. The Department must make
12grants to public or private entities submitting proposals to
13the Board to revitalize an Illinois depressed community. Grants
14may be used by these entities only for those purposes
15conditioned with the grant. For the purposes of this subsection
16(c), plans for revitalizing an Illinois depressed community
17include plans intended to curb high levels of poverty,
18unemployment, job and population loss, and general distress. An
19Illinois depressed community is an area where the poverty rate,
20as determined by using the most recent data released by the
21United States Census Bureau, is at least 3% greater than the
22State poverty rate as determined by using the most recent data
23released by the United States Census Bureau.
 
24    (20 ILCS 605/605-535 new)
25    Sec. 605-535. The Commission on the Future of Economic

 

 

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1Development of the Latino Community.
2    (a) There is hereby created the Commission on the Future of
3Economic Development of the Latino Community within the
4Department. The purpose of the Commission shall be to maintain
5and develop the economy of Latinos and to provide opportunities
6for this community, which will enhance and expand the quality
7of their lives.
8    The Commission shall concentrate its major efforts on
9strategic planning, policy research and analysis, advocacy,
10evaluation, and promoting coordination and collaboration.
11    During each regular legislative session, the Commission
12must consult with appropriate legislative committees about the
13State's economic development needs and opportunities in the
14Latino community.
15    By October 1st of each even-numbered year, the Commission
16must submit to the Governor and the General Assembly a biennial
17comprehensive statewide economic development strategy for the
18Latino community with a report on progress from the previous
19comprehensive strategy.
20    The comprehensive statewide economic development strategy
21may include, but is not limited to:
22        (1) an assessment of the Latino community's economic
23    vitality;
24        (2) recommended goals, objectives, and priorities for
25    the next biennium and the future;
26        (3) a common set of outcomes and benchmarks for the

 

 

10000HB2498ham001- 67 -LRB100 03891 MJP 22700 a

1    economic development system as a whole for the Latino
2    community;
3        (4) recommendations for removing barriers for Latinos
4    in employment;
5        (5) an inventory of existing relevant programs
6    compiled by the Commission from materials submitted by
7    agencies;
8        (6) recommendations for expanding, discontinuing, or
9    redirecting existing programs or adding new programs to
10    better serve the Latino community; and
11        (7) recommendations of best practices and public and
12    private sector roles in implementing the comprehensive
13    statewide economic development strategy.
14    In developing the biennial statewide economic development
15strategy, goals, objectives, priorities, and recommendations,
16the Commission shall consult, collaborate, and coordinate with
17relevant State agencies, private sector business, nonprofit
18organizations involved in economic development, trade
19associations, associate development organizations, and
20relevant local organizations in order to avoid duplication of
21effort.
22    State agencies shall cooperate with the Commission and
23provide information as the Commission may reasonably request.
24    The Commission shall review and make budget
25recommendations to the Governor's Office of Management and
26Budget and the General Assembly in areas relating to the

 

 

10000HB2498ham001- 68 -LRB100 03891 MJP 22700 a

1economic development in the State's Latino community.
2    The Commission shall evaluate its own performance on a
3regular basis.
4    The Commission may accept gifts, grants, donations,
5sponsorships, or contributions from any federal, State, or
6local governmental agency or program, or any private source,
7and expend the same for any purpose consistent with this
8Section.
9    (b) The Commission shall consist of 12 voting members,
10appointed by the Governor, 4 of whom shall be appointed to
11serve an initial term of one year, 4 of whom shall be appointed
12to serve an initial term of 2 years, and 4 of whom shall be
13appointed to serve an initial term of 3 years. After the
14initial term, each member shall be appointed to a term of 3
15years. Members of the Commission shall serve at the pleasure of
16the Governor for not more than 2 consecutive 3-year terms. In
17appointing members, the Governor shall appoint individuals
18from the following private industry sectors:
19        (1) production agriculture;
20        (2) at least 2 individuals from manufacturing, one of
21    whom shall represent a company with no more than 75
22    employees;
23        (3) transportation, construction, and logistics;
24        (4) travel and tourism;
25        (5) financial services and insurance;
26        (6) information technology and communications; and

 

 

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1        (7) biotechnology.
2    The members of the Commission shall choose a member to
3serve as chair of the Commission. The members of the Commission
4shall be representative, to the extent possible, of the various
5geographic areas of the State. The Director shall serve as an
6ad hoc nonvoting member of the Commission. Vacancies shall be
7filled in the same manner as the original appointments. The
8members of the Commission shall serve without compensation.
9    (c) The Commission shall meet at least 4 times per year,
10with at least one meeting each calendar quarter, at the call of
11the director or 4 voting members of the Commission. The staff
12and support for the Commission shall be provided by the
13Department.
14    (d) The Commission and Department are encouraged to involve
15other essential groups in the work of the Commission,
16including, but not limited to:
17        (1) public universities;
18        (2) community colleges;
19        (3) other educational institutions; and
20        (4) the Department of Labor.
21    (e) The Commission shall make recommendations, which must
22be approved by a majority of the members of the Commission, to
23the Department concerning the award of grants from amounts
24appropriated to the Department from the Latino Community
25Economic Development Fund, a special fund in the State
26treasury. The Department shall make grants to public or private

 

 

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1entities submitting proposals to the Commission to assist in
2the economic development of the Latino community. Grants may be
3used by these entities only for those purposes conditioned with
4the grant. The Commission shall coordinate with the Department
5to develop grant criteria.
6    (f) For the purposes of this Section:
7    "Department" means the Department of Commerce and Economic
8Development.
9    "Director" means the Director of Commerce and Economic
10Development.
11    "Educational institutions" means nonprofit public and
12private colleges, community colleges, State colleges, and
13universities in this State.
 
14    Section 90-8. The Illinois Lottery Law is amended by
15changing Section 9.1 as follows:
 
16    (20 ILCS 1605/9.1)
17    Sec. 9.1. Private manager and management agreement.
18    (a) As used in this Section:
19    "Offeror" means a person or group of persons that responds
20to a request for qualifications under this Section.
21    "Request for qualifications" means all materials and
22documents prepared by the Department to solicit the following
23from offerors:
24        (1) Statements of qualifications.

 

 

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1        (2) Proposals to enter into a management agreement,
2    including the identity of any prospective vendor or vendors
3    that the offeror intends to initially engage to assist the
4    offeror in performing its obligations under the management
5    agreement.
6    "Final offer" means the last proposal submitted by an
7offeror in response to the request for qualifications,
8including the identity of any prospective vendor or vendors
9that the offeror intends to initially engage to assist the
10offeror in performing its obligations under the management
11agreement.
12    "Final offeror" means the offeror ultimately selected by
13the Governor to be the private manager for the Lottery under
14subsection (h) of this Section.
15    (b) By September 15, 2010, the Governor shall select a
16private manager for the total management of the Lottery with
17integrated functions, such as lottery game design, supply of
18goods and services, and advertising and as specified in this
19Section.
20    (c) Pursuant to the terms of this subsection, the
21Department shall endeavor to expeditiously terminate the
22existing contracts in support of the Lottery in effect on the
23effective date of this amendatory Act of the 96th General
24Assembly in connection with the selection of the private
25manager. As part of its obligation to terminate these contracts
26and select the private manager, the Department shall establish

 

 

10000HB2498ham001- 72 -LRB100 03891 MJP 22700 a

1a mutually agreeable timetable to transfer the functions of
2existing contractors to the private manager so that existing
3Lottery operations are not materially diminished or impaired
4during the transition. To that end, the Department shall do the
5following:
6        (1) where such contracts contain a provision
7    authorizing termination upon notice, the Department shall
8    provide notice of termination to occur upon the mutually
9    agreed timetable for transfer of functions;
10        (2) upon the expiration of any initial term or renewal
11    term of the current Lottery contracts, the Department shall
12    not renew such contract for a term extending beyond the
13    mutually agreed timetable for transfer of functions; or
14        (3) in the event any current contract provides for
15    termination of that contract upon the implementation of a
16    contract with the private manager, the Department shall
17    perform all necessary actions to terminate the contract on
18    the date that coincides with the mutually agreed timetable
19    for transfer of functions.
20    If the contracts to support the current operation of the
21Lottery in effect on the effective date of this amendatory Act
22of the 96th General Assembly are not subject to termination as
23provided for in this subsection (c), then the Department may
24include a provision in the contract with the private manager
25specifying a mutually agreeable methodology for incorporation.
26    (c-5) The Department shall include provisions in the

 

 

10000HB2498ham001- 73 -LRB100 03891 MJP 22700 a

1management agreement whereby the private manager shall, for a
2fee, and pursuant to a contract negotiated with the Department
3(the "Employee Use Contract"), utilize the services of current
4Department employees to assist in the administration and
5operation of the Lottery. The Department shall be the employer
6of all such bargaining unit employees assigned to perform such
7work for the private manager, and such employees shall be State
8employees, as defined by the Personnel Code. Department
9employees shall operate under the same employment policies,
10rules, regulations, and procedures, as other employees of the
11Department. In addition, neither historical representation
12rights under the Illinois Public Labor Relations Act, nor
13existing collective bargaining agreements, shall be disturbed
14by the management agreement with the private manager for the
15management of the Lottery.
16    (d) The management agreement with the private manager shall
17include all of the following:
18        (1) A term not to exceed 10 years, including any
19    renewals.
20        (2) A provision specifying that the Department:
21            (A) shall exercise actual control over all
22        significant business decisions;
23            (A-5) has the authority to direct or countermand
24        operating decisions by the private manager at any time;
25            (B) has ready access at any time to information
26        regarding Lottery operations;

 

 

10000HB2498ham001- 74 -LRB100 03891 MJP 22700 a

1            (C) has the right to demand and receive information
2        from the private manager concerning any aspect of the
3        Lottery operations at any time; and
4            (D) retains ownership of all trade names,
5        trademarks, and intellectual property associated with
6        the Lottery.
7        (3) A provision imposing an affirmative duty on the
8    private manager to provide the Department with material
9    information and with any information the private manager
10    reasonably believes the Department would want to know to
11    enable the Department to conduct the Lottery.
12        (4) A provision requiring the private manager to
13    provide the Department with advance notice of any operating
14    decision that bears significantly on the public interest,
15    including, but not limited to, decisions on the kinds of
16    games to be offered to the public and decisions affecting
17    the relative risk and reward of the games being offered, so
18    the Department has a reasonable opportunity to evaluate and
19    countermand that decision.
20        (5) A provision providing for compensation of the
21    private manager that may consist of, among other things, a
22    fee for services and a performance based bonus as
23    consideration for managing the Lottery, including terms
24    that may provide the private manager with an increase in
25    compensation if Lottery revenues grow by a specified
26    percentage in a given year.

 

 

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1        (6) (Blank).
2        (7) A provision requiring the deposit of all Lottery
3    proceeds to be deposited into the State Lottery Fund except
4    as otherwise provided in Section 20 of this Act.
5        (8) A provision requiring the private manager to locate
6    its principal office within the State.
7        (8-5) A provision encouraging that at least 20% of the
8    cost of contracts entered into for goods and services by
9    the private manager in connection with its management of
10    the Lottery, other than contracts with sales agents or
11    technical advisors, be awarded to businesses that are a
12    minority owned business, a female owned business, or a
13    business owned by a person with disability, as those terms
14    are defined in the Business Enterprise for Minorities,
15    Females, and Persons with Disabilities Act.
16        (9) A requirement that so long as the private manager
17    complies with all the conditions of the agreement under the
18    oversight of the Department, the private manager shall have
19    the following duties and obligations with respect to the
20    management of the Lottery:
21            (A) The right to use equipment and other assets
22        used in the operation of the Lottery.
23            (B) The rights and obligations under contracts
24        with retailers and vendors.
25            (C) The implementation of a comprehensive security
26        program by the private manager.

 

 

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1            (D) The implementation of a comprehensive system
2        of internal audits.
3            (E) The implementation of a program by the private
4        manager to curb compulsive gambling by persons playing
5        the Lottery.
6            (F) A system for determining (i) the type of
7        Lottery games, (ii) the method of selecting winning
8        tickets, (iii) the manner of payment of prizes to
9        holders of winning tickets, (iv) the frequency of
10        drawings of winning tickets, (v) the method to be used
11        in selling tickets, (vi) a system for verifying the
12        validity of tickets claimed to be winning tickets,
13        (vii) the basis upon which retailer commissions are
14        established by the manager, and (viii) minimum
15        payouts.
16        (10) A requirement that advertising and promotion must
17    be consistent with Section 7.8a of this Act.
18        (11) A requirement that the private manager market the
19    Lottery to those residents who are new, infrequent, or
20    lapsed players of the Lottery, especially those who are
21    most likely to make regular purchases on the Internet as
22    permitted by law.
23        (12) A code of ethics for the private manager's
24    officers and employees.
25        (13) A requirement that the Department monitor and
26    oversee the private manager's practices and take action

 

 

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1    that the Department considers appropriate to ensure that
2    the private manager is in compliance with the terms of the
3    management agreement, while allowing the manager, unless
4    specifically prohibited by law or the management
5    agreement, to negotiate and sign its own contracts with
6    vendors.
7        (14) A provision requiring the private manager to
8    periodically file, at least on an annual basis, appropriate
9    financial statements in a form and manner acceptable to the
10    Department.
11        (15) Cash reserves requirements.
12        (16) Procedural requirements for obtaining the prior
13    approval of the Department when a management agreement or
14    an interest in a management agreement is sold, assigned,
15    transferred, or pledged as collateral to secure financing.
16        (17) Grounds for the termination of the management
17    agreement by the Department or the private manager.
18        (18) Procedures for amendment of the agreement.
19        (19) A provision requiring the private manager to
20    engage in an open and competitive bidding process for any
21    procurement having a cost in excess of $50,000 that is not
22    a part of the private manager's final offer. The process
23    shall favor the selection of a vendor deemed to have
24    submitted a proposal that provides the Lottery with the
25    best overall value. The process shall not be subject to the
26    provisions of the Illinois Procurement Code, unless

 

 

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1    specifically required by the management agreement.
2        (20) The transition of rights and obligations,
3    including any associated equipment or other assets used in
4    the operation of the Lottery, from the manager to any
5    successor manager of the lottery, including the
6    Department, following the termination of or foreclosure
7    upon the management agreement.
8        (21) Right of use of copyrights, trademarks, and
9    service marks held by the Department in the name of the
10    State. The agreement must provide that any use of them by
11    the manager shall only be for the purpose of fulfilling its
12    obligations under the management agreement during the term
13    of the agreement.
14        (22) The disclosure of any information requested by the
15    Department to enable it to comply with the reporting
16    requirements and information requests provided for under
17    subsection (p) of this Section.
18    (e) Notwithstanding any other law to the contrary, the
19Department shall select a private manager through a competitive
20request for qualifications process consistent with Section
2120-35 of the Illinois Procurement Code, which shall take into
22account:
23        (1) the offeror's ability to market the Lottery to
24    those residents who are new, infrequent, or lapsed players
25    of the Lottery, especially those who are most likely to
26    make regular purchases on the Internet;

 

 

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1        (2) the offeror's ability to address the State's
2    concern with the social effects of gambling on those who
3    can least afford to do so;
4        (3) the offeror's ability to provide the most
5    successful management of the Lottery for the benefit of the
6    people of the State based on current and past business
7    practices or plans of the offeror; and
8        (4) the offeror's poor or inadequate past performance
9    in servicing, equipping, operating or managing a lottery on
10    behalf of Illinois, another State or foreign government and
11    attracting persons who are not currently regular players of
12    a lottery.
13    (f) The Department may retain the services of an advisor or
14advisors with significant experience in financial services or
15the management, operation, and procurement of goods, services,
16and equipment for a government-run lottery to assist in the
17preparation of the terms of the request for qualifications and
18selection of the private manager. Any prospective advisor
19seeking to provide services under this subsection (f) shall
20disclose any material business or financial relationship
21during the past 3 years with any potential offeror, or with a
22contractor or subcontractor presently providing goods,
23services, or equipment to the Department to support the
24Lottery. The Department shall evaluate the material business or
25financial relationship of each prospective advisor. The
26Department shall not select any prospective advisor with a

 

 

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1substantial business or financial relationship that the
2Department deems to impair the objectivity of the services to
3be provided by the prospective advisor. During the course of
4the advisor's engagement by the Department, and for a period of
5one year thereafter, the advisor shall not enter into any
6business or financial relationship with any offeror or any
7vendor identified to assist an offeror in performing its
8obligations under the management agreement. Any advisor
9retained by the Department shall be disqualified from being an
10offeror. The Department shall not include terms in the request
11for qualifications that provide a material advantage whether
12directly or indirectly to any potential offeror, or any
13contractor or subcontractor presently providing goods,
14services, or equipment to the Department to support the
15Lottery, including terms contained in previous responses to
16requests for proposals or qualifications submitted to
17Illinois, another State or foreign government when those terms
18are uniquely associated with a particular potential offeror,
19contractor, or subcontractor. The request for proposals
20offered by the Department on December 22, 2008 as
21"LOT08GAMESYS" and reference number "22016176" is declared
22void.
23    (g) The Department shall select at least 2 offerors as
24finalists to potentially serve as the private manager no later
25than August 9, 2010. Upon making preliminary selections, the
26Department shall schedule a public hearing on the finalists'

 

 

10000HB2498ham001- 81 -LRB100 03891 MJP 22700 a

1proposals and provide public notice of the hearing at least 7
2calendar days before the hearing. The notice must include all
3of the following:
4        (1) The date, time, and place of the hearing.
5        (2) The subject matter of the hearing.
6        (3) A brief description of the management agreement to
7    be awarded.
8        (4) The identity of the offerors that have been
9    selected as finalists to serve as the private manager.
10        (5) The address and telephone number of the Department.
11    (h) At the public hearing, the Department shall (i) provide
12sufficient time for each finalist to present and explain its
13proposal to the Department and the Governor or the Governor's
14designee, including an opportunity to respond to questions
15posed by the Department, Governor, or designee and (ii) allow
16the public and non-selected offerors to comment on the
17presentations. The Governor or a designee shall attend the
18public hearing. After the public hearing, the Department shall
19have 14 calendar days to recommend to the Governor whether a
20management agreement should be entered into with a particular
21finalist. After reviewing the Department's recommendation, the
22Governor may accept or reject the Department's recommendation,
23and shall select a final offeror as the private manager by
24publication of a notice in the Illinois Procurement Bulletin on
25or before September 15, 2010. The Governor shall include in the
26notice a detailed explanation and the reasons why the final

 

 

10000HB2498ham001- 82 -LRB100 03891 MJP 22700 a

1offeror is superior to other offerors and will provide
2management services in a manner that best achieves the
3objectives of this Section. The Governor shall also sign the
4management agreement with the private manager.
5    (i) Any action to contest the private manager selected by
6the Governor under this Section must be brought within 7
7calendar days after the publication of the notice of the
8designation of the private manager as provided in subsection
9(h) of this Section.
10    (j) The Lottery shall remain, for so long as a private
11manager manages the Lottery in accordance with provisions of
12this Act, a Lottery conducted by the State, and the State shall
13not be authorized to sell or transfer the Lottery to a third
14party.
15    (k) Any tangible personal property used exclusively in
16connection with the lottery that is owned by the Department and
17leased to the private manager shall be owned by the Department
18in the name of the State and shall be considered to be public
19property devoted to an essential public and governmental
20function.
21    (l) The Department may exercise any of its powers under
22this Section or any other law as necessary or desirable for the
23execution of the Department's powers under this Section.
24    (m) Neither this Section nor any management agreement
25entered into under this Section prohibits the General Assembly
26from authorizing forms of gambling that are not in direct

 

 

10000HB2498ham001- 83 -LRB100 03891 MJP 22700 a

1competition with the Lottery. The forms of gambling authorized
2by this amendatory Act of the 100th General Assembly constitute
3authorized forms of gambling that are not in direct competition
4with the Lottery.
5    (n) The private manager shall be subject to a complete
6investigation in the third, seventh, and tenth years of the
7agreement (if the agreement is for a 10-year term) by the
8Department in cooperation with the Auditor General to determine
9whether the private manager has complied with this Section and
10the management agreement. The private manager shall bear the
11cost of an investigation or reinvestigation of the private
12manager under this subsection.
13    (o) The powers conferred by this Section are in addition
14and supplemental to the powers conferred by any other law. If
15any other law or rule is inconsistent with this Section,
16including, but not limited to, provisions of the Illinois
17Procurement Code, then this Section controls as to any
18management agreement entered into under this Section. This
19Section and any rules adopted under this Section contain full
20and complete authority for a management agreement between the
21Department and a private manager. No law, procedure,
22proceeding, publication, notice, consent, approval, order, or
23act by the Department or any other officer, Department, agency,
24or instrumentality of the State or any political subdivision is
25required for the Department to enter into a management
26agreement under this Section. This Section contains full and

 

 

10000HB2498ham001- 84 -LRB100 03891 MJP 22700 a

1complete authority for the Department to approve any contracts
2entered into by a private manager with a vendor providing
3goods, services, or both goods and services to the private
4manager under the terms of the management agreement, including
5subcontractors of such vendors.
6    Upon receipt of a written request from the Chief
7Procurement Officer, the Department shall provide to the Chief
8Procurement Officer a complete and un-redacted copy of the
9management agreement or any contract that is subject to the
10Department's approval authority under this subsection (o). The
11Department shall provide a copy of the agreement or contract to
12the Chief Procurement Officer in the time specified by the
13Chief Procurement Officer in his or her written request, but no
14later than 5 business days after the request is received by the
15Department. The Chief Procurement Officer must retain any
16portions of the management agreement or of any contract
17designated by the Department as confidential, proprietary, or
18trade secret information in complete confidence pursuant to
19subsection (g) of Section 7 of the Freedom of Information Act.
20The Department shall also provide the Chief Procurement Officer
21with reasonable advance written notice of any contract that is
22pending Department approval.
23    Notwithstanding any other provision of this Section to the
24contrary, the Chief Procurement Officer shall adopt
25administrative rules, including emergency rules, to establish
26a procurement process to select a successor private manager if

 

 

10000HB2498ham001- 85 -LRB100 03891 MJP 22700 a

1a private management agreement has been terminated. The
2selection process shall at a minimum take into account the
3criteria set forth in items (1) through (4) of subsection (e)
4of this Section and may include provisions consistent with
5subsections (f), (g), (h), and (i) of this Section. The Chief
6Procurement Officer shall also implement and administer the
7adopted selection process upon the termination of a private
8management agreement. The Department, after the Chief
9Procurement Officer certifies that the procurement process has
10been followed in accordance with the rules adopted under this
11subsection (o), shall select a final offeror as the private
12manager and sign the management agreement with the private
13manager.
14    Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
1521.9, the Department shall distribute all proceeds of lottery
16tickets and shares sold in the following priority and manner:
17        (1) The payment of prizes and retailer bonuses.
18        (2) The payment of costs incurred in the operation and
19    administration of the Lottery, including the payment of
20    sums due to the private manager under the management
21    agreement with the Department.
22        (3) On the last day of each month or as soon thereafter
23    as possible, the State Comptroller shall direct and the
24    State Treasurer shall transfer from the State Lottery Fund
25    to the Common School Fund an amount that is equal to the
26    proceeds transferred in the corresponding month of fiscal

 

 

10000HB2498ham001- 86 -LRB100 03891 MJP 22700 a

1    year 2009, as adjusted for inflation, to the Common School
2    Fund.
3        (4) On or before the last day of each fiscal year,
4    deposit any remaining proceeds, subject to payments under
5    items (1), (2), and (3) into the Capital Projects Fund each
6    fiscal year.
7    (p) The Department shall be subject to the following
8reporting and information request requirements:
9        (1) the Department shall submit written quarterly
10    reports to the Governor and the General Assembly on the
11    activities and actions of the private manager selected
12    under this Section;
13        (2) upon request of the Chief Procurement Officer, the
14    Department shall promptly produce information related to
15    the procurement activities of the Department and the
16    private manager requested by the Chief Procurement
17    Officer; the Chief Procurement Officer must retain
18    confidential, proprietary, or trade secret information
19    designated by the Department in complete confidence
20    pursuant to subsection (g) of Section 7 of the Freedom of
21    Information Act; and
22        (3) at least 30 days prior to the beginning of the
23    Department's fiscal year, the Department shall prepare an
24    annual written report on the activities of the private
25    manager selected under this Section and deliver that report
26    to the Governor and General Assembly.

 

 

10000HB2498ham001- 87 -LRB100 03891 MJP 22700 a

1(Source: P.A. 98-463, eff. 8-16-13; 98-649, eff. 6-16-14;
299-933, eff. 1-27-17.)
 
3    Section 90-10. The Department of Revenue Law of the Civil
4Administrative Code of Illinois is amended by changing Section
52505-305 as follows:
 
6    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
7    Sec. 2505-305. Investigators.
8    (a) The Department has the power to appoint investigators
9to conduct all investigations, searches, seizures, arrests,
10and other duties imposed under the provisions of any law
11administered by the Department. Except as provided in
12subsection (c), these investigators have and may exercise all
13the powers of peace officers solely for the purpose of
14enforcing taxing measures administered by the Department.
15    (b) The Director must authorize to each investigator
16employed under this Section and to any other employee of the
17Department exercising the powers of a peace officer a distinct
18badge that, on its face, (i) clearly states that the badge is
19authorized by the Department and (ii) contains a unique
20identifying number. No other badge shall be authorized by the
21Department.
22    (c) The Department may enter into agreements with the
23Illinois Gaming Board providing that investigators appointed
24under this Section shall exercise the peace officer powers set

 

 

10000HB2498ham001- 88 -LRB100 03891 MJP 22700 a

1forth in paragraph (20.6) of subsection (c) of Section 5 of the
2Illinois Riverboat Gambling Act.
3(Source: P.A. 96-37, eff. 7-13-09.)
 
4    Section 90-12. The Illinois State Auditing Act is amended
5by changing Section 3-1 as follows:
 
6    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
7    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
8General has jurisdiction over all State agencies to make post
9audits and investigations authorized by or under this Act or
10the Constitution.
11    The Auditor General has jurisdiction over local government
12agencies and private agencies only:
13        (a) to make such post audits authorized by or under
14    this Act as are necessary and incidental to a post audit of
15    a State agency or of a program administered by a State
16    agency involving public funds of the State, but this
17    jurisdiction does not include any authority to review local
18    governmental agencies in the obligation, receipt,
19    expenditure or use of public funds of the State that are
20    granted without limitation or condition imposed by law,
21    other than the general limitation that such funds be used
22    for public purposes;
23        (b) to make investigations authorized by or under this
24    Act or the Constitution; and

 

 

10000HB2498ham001- 89 -LRB100 03891 MJP 22700 a

1        (c) to make audits of the records of local government
2    agencies to verify actual costs of state-mandated programs
3    when directed to do so by the Legislative Audit Commission
4    at the request of the State Board of Appeals under the
5    State Mandates Act.
6    In addition to the foregoing, the Auditor General may
7conduct an audit of the Metropolitan Pier and Exposition
8Authority, the Regional Transportation Authority, the Suburban
9Bus Division, the Commuter Rail Division and the Chicago
10Transit Authority and any other subsidized carrier when
11authorized by the Legislative Audit Commission. Such audit may
12be a financial, management or program audit, or any combination
13thereof.
14    The audit shall determine whether they are operating in
15accordance with all applicable laws and regulations. Subject to
16the limitations of this Act, the Legislative Audit Commission
17may by resolution specify additional determinations to be
18included in the scope of the audit.
19    In addition to the foregoing, the Auditor General must also
20conduct a financial audit of the Illinois Sports Facilities
21Authority's expenditures of public funds in connection with the
22reconstruction, renovation, remodeling, extension, or
23improvement of all or substantially all of any existing
24"facility", as that term is defined in the Illinois Sports
25Facilities Authority Act.
26    The Auditor General may also conduct an audit, when

 

 

10000HB2498ham001- 90 -LRB100 03891 MJP 22700 a

1authorized by the Legislative Audit Commission, of any hospital
2which receives 10% or more of its gross revenues from payments
3from the State of Illinois, Department of Healthcare and Family
4Services (formerly Department of Public Aid), Medical
5Assistance Program.
6    The Auditor General is authorized to conduct financial and
7compliance audits of the Illinois Distance Learning Foundation
8and the Illinois Conservation Foundation.
9    As soon as practical after the effective date of this
10amendatory Act of 1995, the Auditor General shall conduct a
11compliance and management audit of the City of Chicago and any
12other entity with regard to the operation of Chicago O'Hare
13International Airport, Chicago Midway Airport and Merrill C.
14Meigs Field. The audit shall include, but not be limited to, an
15examination of revenues, expenses, and transfers of funds;
16purchasing and contracting policies and practices; staffing
17levels; and hiring practices and procedures. When completed,
18the audit required by this paragraph shall be distributed in
19accordance with Section 3-14.
20    The Auditor General shall conduct a financial and
21compliance and program audit of distributions from the
22Municipal Economic Development Fund during the immediately
23preceding calendar year pursuant to Section 8-403.1 of the
24Public Utilities Act at no cost to the city, village, or
25incorporated town that received the distributions.
26    The Auditor General must conduct an audit of the Health

 

 

10000HB2498ham001- 91 -LRB100 03891 MJP 22700 a

1Facilities and Services Review Board pursuant to Section 19.5
2of the Illinois Health Facilities Planning Act.
3    The Auditor General must conduct an audit of the Chicago
4Casino Development Authority pursuant to Section 1-60 of the
5Chicago Casino Development Authority Act.
6    The Auditor General of the State of Illinois shall annually
7conduct or cause to be conducted a financial and compliance
8audit of the books and records of any county water commission
9organized pursuant to the Water Commission Act of 1985 and
10shall file a copy of the report of that audit with the Governor
11and the Legislative Audit Commission. The filed audit shall be
12open to the public for inspection. The cost of the audit shall
13be charged to the county water commission in accordance with
14Section 6z-27 of the State Finance Act. The county water
15commission shall make available to the Auditor General its
16books and records and any other documentation, whether in the
17possession of its trustees or other parties, necessary to
18conduct the audit required. These audit requirements apply only
19through July 1, 2007.
20    The Auditor General must conduct audits of the Rend Lake
21Conservancy District as provided in Section 25.5 of the River
22Conservancy Districts Act.
23    The Auditor General must conduct financial audits of the
24Southeastern Illinois Economic Development Authority as
25provided in Section 70 of the Southeastern Illinois Economic
26Development Authority Act.

 

 

10000HB2498ham001- 92 -LRB100 03891 MJP 22700 a

1    The Auditor General shall conduct a compliance audit in
2accordance with subsections (d) and (f) of Section 30 of the
3Innovation Development and Economy Act.
4(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
596-939, eff. 6-24-10.)
 
6    Section 90-15. The State Finance Act is amended by adding
7Sections 5.878, 5.879, 5.880, and 6z-102 and by changing
8Section 6z-45 as follows:
 
9    (30 ILCS 105/5.878 new)
10    Sec. 5.878. The Gaming Facilities Fee Revenue Fund.
 
11    (30 ILCS 105/5.879 new)
12    Sec. 5.879. The Depressed Communities Economic Development
13Fund.
 
14    (30 ILCS 105/5.880 new)
15    Sec. 5.880. The Latino Community Economic Development
16Fund.
 
17    (30 ILCS 105/6z-45)
18    Sec. 6z-45. The School Infrastructure Fund.
19    (a) The School Infrastructure Fund is created as a special
20fund in the State Treasury.
21    In addition to any other deposits authorized by law,

 

 

10000HB2498ham001- 93 -LRB100 03891 MJP 22700 a

1beginning January 1, 2000, on the first day of each month, or
2as soon thereafter as may be practical, the State Treasurer and
3State Comptroller shall transfer the sum of $5,000,000 from the
4General Revenue Fund to the School Infrastructure Fund, except
5that, notwithstanding any other provision of law, and in
6addition to any other transfers that may be provided for by
7law, before June 30, 2012, the Comptroller and the Treasurer
8shall transfer $45,000,000 from the General Revenue Fund into
9the School Infrastructure Fund, and, for fiscal year 2013 only,
10the Treasurer and the Comptroller shall transfer $1,250,000
11from the General Revenue Fund to the School Infrastructure Fund
12on the first day of each month; provided, however, that no such
13transfers shall be made from July 1, 2001 through June 30,
142003.
15    (b) Subject to the transfer provisions set forth below,
16money in the School Infrastructure Fund shall, if and when the
17State of Illinois incurs any bonded indebtedness for the
18construction of school improvements under the School
19Construction Law, be set aside and used for the purpose of
20paying and discharging annually the principal and interest on
21that bonded indebtedness then due and payable, and for no other
22purpose.
23    In addition to other transfers to the General Obligation
24Bond Retirement and Interest Fund made pursuant to Section 15
25of the General Obligation Bond Act, upon each delivery of bonds
26issued for construction of school improvements under the School

 

 

10000HB2498ham001- 94 -LRB100 03891 MJP 22700 a

1Construction Law, the State Comptroller shall compute and
2certify to the State Treasurer the total amount of principal
3of, interest on, and premium, if any, on such bonds during the
4then current and each succeeding fiscal year. With respect to
5the interest payable on variable rate bonds, such
6certifications shall be calculated at the maximum rate of
7interest that may be payable during the fiscal year, after
8taking into account any credits permitted in the related
9indenture or other instrument against the amount of such
10interest required to be appropriated for that period.
11    On or before the last day of each month, the State
12Treasurer and State Comptroller shall transfer from the School
13Infrastructure Fund to the General Obligation Bond Retirement
14and Interest Fund an amount sufficient to pay the aggregate of
15the principal of, interest on, and premium, if any, on the
16bonds payable on their next payment date, divided by the number
17of monthly transfers occurring between the last previous
18payment date (or the delivery date if no payment date has yet
19occurred) and the next succeeding payment date. Interest
20payable on variable rate bonds shall be calculated at the
21maximum rate of interest that may be payable for the relevant
22period, after taking into account any credits permitted in the
23related indenture or other instrument against the amount of
24such interest required to be appropriated for that period.
25Interest for which moneys have already been deposited into the
26capitalized interest account within the General Obligation

 

 

10000HB2498ham001- 95 -LRB100 03891 MJP 22700 a

1Bond Retirement and Interest Fund shall not be included in the
2calculation of the amounts to be transferred under this
3subsection.
4    (b-5) The money deposited into the School Infrastructure
5Fund from transfers pursuant to subsections (c-30) and (c-35)
6of Section 13 of the Illinois Riverboat Gambling Act shall be
7applied, without further direction, as provided in subsection
8(b-3) of Section 5-35 of the School Construction Law.
9    (c) The surplus, if any, in the School Infrastructure Fund
10after payments made pursuant to subsections (b) and (b-5) of
11this Section shall, subject to appropriation, be used as
12follows:
13    First - to make 3 payments to the School Technology
14Revolving Loan Fund as follows:
15        Transfer of $30,000,000 in fiscal year 1999;
16        Transfer of $20,000,000 in fiscal year 2000; and
17        Transfer of $10,000,000 in fiscal year 2001.
18    Second - to pay the expenses of the State Board of
19Education and the Capital Development Board in administering
20programs under the School Construction Law, the total expenses
21not to exceed $1,200,000 in any fiscal year.
22    Third - to pay any amounts due for grants for school
23construction projects and debt service under the School
24Construction Law.
25    Fourth - to pay any amounts due for grants for school
26maintenance projects under the School Construction Law.

 

 

10000HB2498ham001- 96 -LRB100 03891 MJP 22700 a

1(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
 
2    (30 ILCS 105/6z-102 new)
3    Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.
4    (a) The Gaming Facilities Fee Revenue Fund is created as a
5special fund in the State treasury.
6    (b) The revenues in the Fund shall be used, subject to
7appropriation, by the Comptroller for the purpose of (i)
8providing appropriations to the Illinois Gaming Board for the
9administration and enforcement of the Illinois Gambling Act and
10the applicable provisions of the Chicago Casino Development
11Authority Act and (ii) payment of vouchers that are outstanding
12for more than 60 days. Whenever practical, the Comptroller must
13prioritize voucher payments for expenses related to medical
14assistance under the Illinois Public Aid Code, the Children's
15Health Insurance Program Act, and the Covering ALL KIDS Health
16Insurance Act.
17    (c) The Fund shall consist of fee revenues received
18pursuant to subsection (e) of Section 1-45 of the Chicago
19Casino Development Authority Act and pursuant to subsections
20(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections
21(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
22Act. All interest earned on moneys in the Fund shall be
23deposited into the Fund.
24    (d) The Fund shall not be subject to administrative charges
25or chargebacks, including, but not limited to, those authorized

 

 

10000HB2498ham001- 97 -LRB100 03891 MJP 22700 a

1under subsection (h) of Section 8 of this Act.
 
2    Section 90-20. The Illinois Income Tax Act is amended by
3changing Sections 201, 303, 304 and 710 as follows:
 
4    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
5    Sec. 201. Tax Imposed.
6    (a) In general. A tax measured by net income is hereby
7imposed on every individual, corporation, trust and estate for
8each taxable year ending after July 31, 1969 on the privilege
9of earning or receiving income in or as a resident of this
10State. Such tax shall be in addition to all other occupation or
11privilege taxes imposed by this State or by any municipal
12corporation or political subdivision thereof.
13    (b) Rates. The tax imposed by subsection (a) of this
14Section shall be determined as follows, except as adjusted by
15subsection (d-1):
16        (1) In the case of an individual, trust or estate, for
17    taxable years ending prior to July 1, 1989, an amount equal
18    to 2 1/2% of the taxpayer's net income for the taxable
19    year.
20        (2) In the case of an individual, trust or estate, for
21    taxable years beginning prior to July 1, 1989 and ending
22    after June 30, 1989, an amount equal to the sum of (i) 2
23    1/2% of the taxpayer's net income for the period prior to
24    July 1, 1989, as calculated under Section 202.3, and (ii)

 

 

10000HB2498ham001- 98 -LRB100 03891 MJP 22700 a

1    3% of the taxpayer's net income for the period after June
2    30, 1989, as calculated under Section 202.3.
3        (3) In the case of an individual, trust or estate, for
4    taxable years beginning after June 30, 1989, and ending
5    prior to January 1, 2011, an amount equal to 3% of the
6    taxpayer's net income for the taxable year.
7        (4) In the case of an individual, trust, or estate, for
8    taxable years beginning prior to January 1, 2011, and
9    ending after December 31, 2010, an amount equal to the sum
10    of (i) 3% of the taxpayer's net income for the period prior
11    to January 1, 2011, as calculated under Section 202.5, and
12    (ii) 5% of the taxpayer's net income for the period after
13    December 31, 2010, as calculated under Section 202.5.
14        (5) In the case of an individual, trust, or estate, for
15    taxable years beginning on or after January 1, 2011, and
16    ending prior to January 1, 2015, an amount equal to 5% of
17    the taxpayer's net income for the taxable year.
18        (5.1) In the case of an individual, trust, or estate,
19    for taxable years beginning prior to January 1, 2015, and
20    ending after December 31, 2014, an amount equal to the sum
21    of (i) 5% of the taxpayer's net income for the period prior
22    to January 1, 2015, as calculated under Section 202.5, and
23    (ii) 3.75% of the taxpayer's net income for the period
24    after December 31, 2014, as calculated under Section 202.5.
25        (5.2) In the case of an individual, trust, or estate,
26    for taxable years beginning on or after January 1, 2015,

 

 

10000HB2498ham001- 99 -LRB100 03891 MJP 22700 a

1    and ending prior to January 1, 2025, an amount equal to
2    3.75% of the taxpayer's net income for the taxable year.
3        (5.3) In the case of an individual, trust, or estate,
4    for taxable years beginning prior to January 1, 2025, and
5    ending after December 31, 2024, an amount equal to the sum
6    of (i) 3.75% of the taxpayer's net income for the period
7    prior to January 1, 2025, as calculated under Section
8    202.5, and (ii) 3.25% of the taxpayer's net income for the
9    period after December 31, 2024, as calculated under Section
10    202.5.
11        (5.4) In the case of an individual, trust, or estate,
12    for taxable years beginning on or after January 1, 2025, an
13    amount equal to 3.25% of the taxpayer's net income for the
14    taxable year.
15        (6) In the case of a corporation, for taxable years
16    ending prior to July 1, 1989, an amount equal to 4% of the
17    taxpayer's net income for the taxable year.
18        (7) In the case of a corporation, for taxable years
19    beginning prior to July 1, 1989 and ending after June 30,
20    1989, an amount equal to the sum of (i) 4% of the
21    taxpayer's net income for the period prior to July 1, 1989,
22    as calculated under Section 202.3, and (ii) 4.8% of the
23    taxpayer's net income for the period after June 30, 1989,
24    as calculated under Section 202.3.
25        (8) In the case of a corporation, for taxable years
26    beginning after June 30, 1989, and ending prior to January

 

 

10000HB2498ham001- 100 -LRB100 03891 MJP 22700 a

1    1, 2011, an amount equal to 4.8% of the taxpayer's net
2    income for the taxable year.
3        (9) In the case of a corporation, for taxable years
4    beginning prior to January 1, 2011, and ending after
5    December 31, 2010, an amount equal to the sum of (i) 4.8%
6    of the taxpayer's net income for the period prior to
7    January 1, 2011, as calculated under Section 202.5, and
8    (ii) 7% of the taxpayer's net income for the period after
9    December 31, 2010, as calculated under Section 202.5.
10        (10) In the case of a corporation, for taxable years
11    beginning on or after January 1, 2011, and ending prior to
12    January 1, 2015, an amount equal to 7% of the taxpayer's
13    net income for the taxable year.
14        (11) In the case of a corporation, for taxable years
15    beginning prior to January 1, 2015, and ending after
16    December 31, 2014, an amount equal to the sum of (i) 7% of
17    the taxpayer's net income for the period prior to January
18    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
19    of the taxpayer's net income for the period after December
20    31, 2014, as calculated under Section 202.5.
21        (12) In the case of a corporation, for taxable years
22    beginning on or after January 1, 2015, and ending prior to
23    January 1, 2025, an amount equal to 5.25% of the taxpayer's
24    net income for the taxable year.
25        (13) In the case of a corporation, for taxable years
26    beginning prior to January 1, 2025, and ending after

 

 

10000HB2498ham001- 101 -LRB100 03891 MJP 22700 a

1    December 31, 2024, an amount equal to the sum of (i) 5.25%
2    of the taxpayer's net income for the period prior to
3    January 1, 2025, as calculated under Section 202.5, and
4    (ii) 4.8% of the taxpayer's net income for the period after
5    December 31, 2024, as calculated under Section 202.5.
6        (14) In the case of a corporation, for taxable years
7    beginning on or after January 1, 2025, an amount equal to
8    4.8% of the taxpayer's net income for the taxable year.
9    The rates under this subsection (b) are subject to the
10provisions of Section 201.5.
11    (b-5) Surcharge; sale or exchange of assets, properties,
12and intangibles of electronic gaming licensees. For each of
13taxable years 2017 through 2025, a surcharge is imposed on all
14taxpayers on income arising from the sale or exchange of
15capital assets, depreciable business property, real property
16used in the trade or business, and Section 197 intangibles (i)
17of an organization licensee under the Illinois Horse Racing Act
18of 1975 and (ii) of an electronic gaming licensee under the
19Illinois Gambling Act. The amount of the surcharge is equal to
20the amount of federal income tax liability for the taxable year
21attributable to those sales and exchanges. The surcharge
22imposed shall not apply if:
23        (1) the electronic gaming license, organization
24    license, or race track property is transferred as a result
25    of any of the following:
26            (A) bankruptcy, a receivership, or a debt

 

 

10000HB2498ham001- 102 -LRB100 03891 MJP 22700 a

1        adjustment initiated by or against the initial
2        licensee or the substantial owners of the initial
3        licensee;
4            (B) cancellation, revocation, or termination of
5        any such license by the Illinois Gaming Board or the
6        Illinois Racing Board;
7            (C) a determination by the Illinois Gaming Board
8        that transfer of the license is in the best interests
9        of Illinois gaming;
10            (D) the death of an owner of the equity interest in
11        a licensee;
12            (E) the acquisition of a controlling interest in
13        the stock or substantially all of the assets of a
14        publicly traded company;
15            (F) a transfer by a parent company to a wholly
16        owned subsidiary; or
17            (G) the transfer or sale to or by one person to
18        another person where both persons were initial owners
19        of the license when the license was issued; or
20        (2) the controlling interest in the electronic gaming
21    license, organization license, or race track property is
22    transferred in a transaction to lineal descendants in which
23    no gain or loss is recognized or as a result of a
24    transaction in accordance with Section 351 of the Internal
25    Revenue Code in which no gain or loss is recognized; or
26        (3) live horse racing was not conducted in 2011 under a

 

 

10000HB2498ham001- 103 -LRB100 03891 MJP 22700 a

1    license issued pursuant to the Illinois Horse Racing Act of
2    1975.
3    The transfer of an electronic gaming license, organization
4license, or race track property by a person other than the
5initial licensee to receive the electronic gaming license is
6not subject to a surcharge. The Department shall adopt rules
7necessary to implement and administer this subsection.
8    (c) Personal Property Tax Replacement Income Tax.
9Beginning on July 1, 1979 and thereafter, in addition to such
10income tax, there is also hereby imposed the Personal Property
11Tax Replacement Income Tax measured by net income on every
12corporation (including Subchapter S corporations), partnership
13and trust, for each taxable year ending after June 30, 1979.
14Such taxes are imposed on the privilege of earning or receiving
15income in or as a resident of this State. The Personal Property
16Tax Replacement Income Tax shall be in addition to the income
17tax imposed by subsections (a) and (b) of this Section and in
18addition to all other occupation or privilege taxes imposed by
19this State or by any municipal corporation or political
20subdivision thereof.
21    (d) Additional Personal Property Tax Replacement Income
22Tax Rates. The personal property tax replacement income tax
23imposed by this subsection and subsection (c) of this Section
24in the case of a corporation, other than a Subchapter S
25corporation and except as adjusted by subsection (d-1), shall
26be an additional amount equal to 2.85% of such taxpayer's net

 

 

10000HB2498ham001- 104 -LRB100 03891 MJP 22700 a

1income for the taxable year, except that beginning on January
21, 1981, and thereafter, the rate of 2.85% specified in this
3subsection shall be reduced to 2.5%, and in the case of a
4partnership, trust or a Subchapter S corporation shall be an
5additional amount equal to 1.5% of such taxpayer's net income
6for the taxable year.
7    (d-1) Rate reduction for certain foreign insurers. In the
8case of a foreign insurer, as defined by Section 35A-5 of the
9Illinois Insurance Code, whose state or country of domicile
10imposes on insurers domiciled in Illinois a retaliatory tax
11(excluding any insurer whose premiums from reinsurance assumed
12are 50% or more of its total insurance premiums as determined
13under paragraph (2) of subsection (b) of Section 304, except
14that for purposes of this determination premiums from
15reinsurance do not include premiums from inter-affiliate
16reinsurance arrangements), beginning with taxable years ending
17on or after December 31, 1999, the sum of the rates of tax
18imposed by subsections (b) and (d) shall be reduced (but not
19increased) to the rate at which the total amount of tax imposed
20under this Act, net of all credits allowed under this Act,
21shall equal (i) the total amount of tax that would be imposed
22on the foreign insurer's net income allocable to Illinois for
23the taxable year by such foreign insurer's state or country of
24domicile if that net income were subject to all income taxes
25and taxes measured by net income imposed by such foreign
26insurer's state or country of domicile, net of all credits

 

 

10000HB2498ham001- 105 -LRB100 03891 MJP 22700 a

1allowed or (ii) a rate of zero if no such tax is imposed on such
2income by the foreign insurer's state of domicile. For the
3purposes of this subsection (d-1), an inter-affiliate includes
4a mutual insurer under common management.
5        (1) For the purposes of subsection (d-1), in no event
6    shall the sum of the rates of tax imposed by subsections
7    (b) and (d) be reduced below the rate at which the sum of:
8            (A) the total amount of tax imposed on such foreign
9        insurer under this Act for a taxable year, net of all
10        credits allowed under this Act, plus
11            (B) the privilege tax imposed by Section 409 of the
12        Illinois Insurance Code, the fire insurance company
13        tax imposed by Section 12 of the Fire Investigation
14        Act, and the fire department taxes imposed under
15        Section 11-10-1 of the Illinois Municipal Code,
16    equals 1.25% for taxable years ending prior to December 31,
17    2003, or 1.75% for taxable years ending on or after
18    December 31, 2003, of the net taxable premiums written for
19    the taxable year, as described by subsection (1) of Section
20    409 of the Illinois Insurance Code. This paragraph will in
21    no event increase the rates imposed under subsections (b)
22    and (d).
23        (2) Any reduction in the rates of tax imposed by this
24    subsection shall be applied first against the rates imposed
25    by subsection (b) and only after the tax imposed by
26    subsection (a) net of all credits allowed under this

 

 

10000HB2498ham001- 106 -LRB100 03891 MJP 22700 a

1    Section other than the credit allowed under subsection (i)
2    has been reduced to zero, against the rates imposed by
3    subsection (d).
4    This subsection (d-1) is exempt from the provisions of
5Section 250.
6    (e) Investment credit. A taxpayer shall be allowed a credit
7against the Personal Property Tax Replacement Income Tax for
8investment in qualified property.
9        (1) A taxpayer shall be allowed a credit equal to .5%
10    of the basis of qualified property placed in service during
11    the taxable year, provided such property is placed in
12    service on or after July 1, 1984. There shall be allowed an
13    additional credit equal to .5% of the basis of qualified
14    property placed in service during the taxable year,
15    provided such property is placed in service on or after
16    July 1, 1986, and the taxpayer's base employment within
17    Illinois has increased by 1% or more over the preceding
18    year as determined by the taxpayer's employment records
19    filed with the Illinois Department of Employment Security.
20    Taxpayers who are new to Illinois shall be deemed to have
21    met the 1% growth in base employment for the first year in
22    which they file employment records with the Illinois
23    Department of Employment Security. The provisions added to
24    this Section by Public Act 85-1200 (and restored by Public
25    Act 87-895) shall be construed as declaratory of existing
26    law and not as a new enactment. If, in any year, the

 

 

10000HB2498ham001- 107 -LRB100 03891 MJP 22700 a

1    increase in base employment within Illinois over the
2    preceding year is less than 1%, the additional credit shall
3    be limited to that percentage times a fraction, the
4    numerator of which is .5% and the denominator of which is
5    1%, but shall not exceed .5%. The investment credit shall
6    not be allowed to the extent that it would reduce a
7    taxpayer's liability in any tax year below zero, nor may
8    any credit for qualified property be allowed for any year
9    other than the year in which the property was placed in
10    service in Illinois. For tax years ending on or after
11    December 31, 1987, and on or before December 31, 1988, the
12    credit shall be allowed for the tax year in which the
13    property is placed in service, or, if the amount of the
14    credit exceeds the tax liability for that year, whether it
15    exceeds the original liability or the liability as later
16    amended, such excess may be carried forward and applied to
17    the tax liability of the 5 taxable years following the
18    excess credit years if the taxpayer (i) makes investments
19    which cause the creation of a minimum of 2,000 full-time
20    equivalent jobs in Illinois, (ii) is located in an
21    enterprise zone established pursuant to the Illinois
22    Enterprise Zone Act and (iii) is certified by the
23    Department of Commerce and Community Affairs (now
24    Department of Commerce and Economic Opportunity) as
25    complying with the requirements specified in clause (i) and
26    (ii) by July 1, 1986. The Department of Commerce and

 

 

10000HB2498ham001- 108 -LRB100 03891 MJP 22700 a

1    Community Affairs (now Department of Commerce and Economic
2    Opportunity) shall notify the Department of Revenue of all
3    such certifications immediately. For tax years ending
4    after December 31, 1988, the credit shall be allowed for
5    the tax year in which the property is placed in service,
6    or, if the amount of the credit exceeds the tax liability
7    for that year, whether it exceeds the original liability or
8    the liability as later amended, such excess may be carried
9    forward and applied to the tax liability of the 5 taxable
10    years following the excess credit years. The credit shall
11    be applied to the earliest year for which there is a
12    liability. If there is credit from more than one tax year
13    that is available to offset a liability, earlier credit
14    shall be applied first.
15        (2) The term "qualified property" means property
16    which:
17            (A) is tangible, whether new or used, including
18        buildings and structural components of buildings and
19        signs that are real property, but not including land or
20        improvements to real property that are not a structural
21        component of a building such as landscaping, sewer
22        lines, local access roads, fencing, parking lots, and
23        other appurtenances;
24            (B) is depreciable pursuant to Section 167 of the
25        Internal Revenue Code, except that "3-year property"
26        as defined in Section 168(c)(2)(A) of that Code is not

 

 

10000HB2498ham001- 109 -LRB100 03891 MJP 22700 a

1        eligible for the credit provided by this subsection
2        (e);
3            (C) is acquired by purchase as defined in Section
4        179(d) of the Internal Revenue Code;
5            (D) is used in Illinois by a taxpayer who is
6        primarily engaged in manufacturing, or in mining coal
7        or fluorite, or in retailing, or was placed in service
8        on or after July 1, 2006 in a River Edge Redevelopment
9        Zone established pursuant to the River Edge
10        Redevelopment Zone Act; and
11            (E) has not previously been used in Illinois in
12        such a manner and by such a person as would qualify for
13        the credit provided by this subsection (e) or
14        subsection (f).
15        (3) For purposes of this subsection (e),
16    "manufacturing" means the material staging and production
17    of tangible personal property by procedures commonly
18    regarded as manufacturing, processing, fabrication, or
19    assembling which changes some existing material into new
20    shapes, new qualities, or new combinations. For purposes of
21    this subsection (e) the term "mining" shall have the same
22    meaning as the term "mining" in Section 613(c) of the
23    Internal Revenue Code. For purposes of this subsection (e),
24    the term "retailing" means the sale of tangible personal
25    property for use or consumption and not for resale, or
26    services rendered in conjunction with the sale of tangible

 

 

10000HB2498ham001- 110 -LRB100 03891 MJP 22700 a

1    personal property for use or consumption and not for
2    resale. For purposes of this subsection (e), "tangible
3    personal property" has the same meaning as when that term
4    is used in the Retailers' Occupation Tax Act, and, for
5    taxable years ending after December 31, 2008, does not
6    include the generation, transmission, or distribution of
7    electricity.
8        (4) The basis of qualified property shall be the basis
9    used to compute the depreciation deduction for federal
10    income tax purposes.
11        (5) If the basis of the property for federal income tax
12    depreciation purposes is increased after it has been placed
13    in service in Illinois by the taxpayer, the amount of such
14    increase shall be deemed property placed in service on the
15    date of such increase in basis.
16        (6) The term "placed in service" shall have the same
17    meaning as under Section 46 of the Internal Revenue Code.
18        (7) If during any taxable year, any property ceases to
19    be qualified property in the hands of the taxpayer within
20    48 months after being placed in service, or the situs of
21    any qualified property is moved outside Illinois within 48
22    months after being placed in service, the Personal Property
23    Tax Replacement Income Tax for such taxable year shall be
24    increased. Such increase shall be determined by (i)
25    recomputing the investment credit which would have been
26    allowed for the year in which credit for such property was

 

 

10000HB2498ham001- 111 -LRB100 03891 MJP 22700 a

1    originally allowed by eliminating such property from such
2    computation and, (ii) subtracting such recomputed credit
3    from the amount of credit previously allowed. For the
4    purposes of this paragraph (7), a reduction of the basis of
5    qualified property resulting from a redetermination of the
6    purchase price shall be deemed a disposition of qualified
7    property to the extent of such reduction.
8        (8) Unless the investment credit is extended by law,
9    the basis of qualified property shall not include costs
10    incurred after December 31, 2018, except for costs incurred
11    pursuant to a binding contract entered into on or before
12    December 31, 2018.
13        (9) Each taxable year ending before December 31, 2000,
14    a partnership may elect to pass through to its partners the
15    credits to which the partnership is entitled under this
16    subsection (e) for the taxable year. A partner may use the
17    credit allocated to him or her under this paragraph only
18    against the tax imposed in subsections (c) and (d) of this
19    Section. If the partnership makes that election, those
20    credits shall be allocated among the partners in the
21    partnership in accordance with the rules set forth in
22    Section 704(b) of the Internal Revenue Code, and the rules
23    promulgated under that Section, and the allocated amount of
24    the credits shall be allowed to the partners for that
25    taxable year. The partnership shall make this election on
26    its Personal Property Tax Replacement Income Tax return for

 

 

10000HB2498ham001- 112 -LRB100 03891 MJP 22700 a

1    that taxable year. The election to pass through the credits
2    shall be irrevocable.
3        For taxable years ending on or after December 31, 2000,
4    a partner that qualifies its partnership for a subtraction
5    under subparagraph (I) of paragraph (2) of subsection (d)
6    of Section 203 or a shareholder that qualifies a Subchapter
7    S corporation for a subtraction under subparagraph (S) of
8    paragraph (2) of subsection (b) of Section 203 shall be
9    allowed a credit under this subsection (e) equal to its
10    share of the credit earned under this subsection (e) during
11    the taxable year by the partnership or Subchapter S
12    corporation, determined in accordance with the
13    determination of income and distributive share of income
14    under Sections 702 and 704 and Subchapter S of the Internal
15    Revenue Code. This paragraph is exempt from the provisions
16    of Section 250.
17    (f) Investment credit; Enterprise Zone; River Edge
18Redevelopment Zone.
19        (1) A taxpayer shall be allowed a credit against the
20    tax imposed by subsections (a) and (b) of this Section for
21    investment in qualified property which is placed in service
22    in an Enterprise Zone created pursuant to the Illinois
23    Enterprise Zone Act or, for property placed in service on
24    or after July 1, 2006, a River Edge Redevelopment Zone
25    established pursuant to the River Edge Redevelopment Zone
26    Act. For partners, shareholders of Subchapter S

 

 

10000HB2498ham001- 113 -LRB100 03891 MJP 22700 a

1    corporations, and owners of limited liability companies,
2    if the liability company is treated as a partnership for
3    purposes of federal and State income taxation, there shall
4    be allowed a credit under this subsection (f) to be
5    determined in accordance with the determination of income
6    and distributive share of income under Sections 702 and 704
7    and Subchapter S of the Internal Revenue Code. The credit
8    shall be .5% of the basis for such property. The credit
9    shall be available only in the taxable year in which the
10    property is placed in service in the Enterprise Zone or
11    River Edge Redevelopment Zone and shall not be allowed to
12    the extent that it would reduce a taxpayer's liability for
13    the tax imposed by subsections (a) and (b) of this Section
14    to below zero. For tax years ending on or after December
15    31, 1985, the credit shall be allowed for the tax year in
16    which the property is placed in service, or, if the amount
17    of the credit exceeds the tax liability for that year,
18    whether it exceeds the original liability or the liability
19    as later amended, such excess may be carried forward and
20    applied to the tax liability of the 5 taxable years
21    following the excess credit year. The credit shall be
22    applied to the earliest year for which there is a
23    liability. If there is credit from more than one tax year
24    that is available to offset a liability, the credit
25    accruing first in time shall be applied first.
26        (2) The term qualified property means property which:

 

 

10000HB2498ham001- 114 -LRB100 03891 MJP 22700 a

1            (A) is tangible, whether new or used, including
2        buildings and structural components of buildings;
3            (B) is depreciable pursuant to Section 167 of the
4        Internal Revenue Code, except that "3-year property"
5        as defined in Section 168(c)(2)(A) of that Code is not
6        eligible for the credit provided by this subsection
7        (f);
8            (C) is acquired by purchase as defined in Section
9        179(d) of the Internal Revenue Code;
10            (D) is used in the Enterprise Zone or River Edge
11        Redevelopment Zone by the taxpayer; and
12            (E) has not been previously used in Illinois in
13        such a manner and by such a person as would qualify for
14        the credit provided by this subsection (f) or
15        subsection (e).
16        (3) The basis of qualified property shall be the basis
17    used to compute the depreciation deduction for federal
18    income tax purposes.
19        (4) If the basis of the property for federal income tax
20    depreciation purposes is increased after it has been placed
21    in service in the Enterprise Zone or River Edge
22    Redevelopment Zone by the taxpayer, the amount of such
23    increase shall be deemed property placed in service on the
24    date of such increase in basis.
25        (5) The term "placed in service" shall have the same
26    meaning as under Section 46 of the Internal Revenue Code.

 

 

10000HB2498ham001- 115 -LRB100 03891 MJP 22700 a

1        (6) If during any taxable year, any property ceases to
2    be qualified property in the hands of the taxpayer within
3    48 months after being placed in service, or the situs of
4    any qualified property is moved outside the Enterprise Zone
5    or River Edge Redevelopment Zone within 48 months after
6    being placed in service, the tax imposed under subsections
7    (a) and (b) of this Section for such taxable year shall be
8    increased. Such increase shall be determined by (i)
9    recomputing the investment credit which would have been
10    allowed for the year in which credit for such property was
11    originally allowed by eliminating such property from such
12    computation, and (ii) subtracting such recomputed credit
13    from the amount of credit previously allowed. For the
14    purposes of this paragraph (6), a reduction of the basis of
15    qualified property resulting from a redetermination of the
16    purchase price shall be deemed a disposition of qualified
17    property to the extent of such reduction.
18        (7) There shall be allowed an additional credit equal
19    to 0.5% of the basis of qualified property placed in
20    service during the taxable year in a River Edge
21    Redevelopment Zone, provided such property is placed in
22    service on or after July 1, 2006, and the taxpayer's base
23    employment within Illinois has increased by 1% or more over
24    the preceding year as determined by the taxpayer's
25    employment records filed with the Illinois Department of
26    Employment Security. Taxpayers who are new to Illinois

 

 

10000HB2498ham001- 116 -LRB100 03891 MJP 22700 a

1    shall be deemed to have met the 1% growth in base
2    employment for the first year in which they file employment
3    records with the Illinois Department of Employment
4    Security. If, in any year, the increase in base employment
5    within Illinois over the preceding year is less than 1%,
6    the additional credit shall be limited to that percentage
7    times a fraction, the numerator of which is 0.5% and the
8    denominator of which is 1%, but shall not exceed 0.5%.
9    (g) (Blank).
10    (h) Investment credit; High Impact Business.
11        (1) Subject to subsections (b) and (b-5) of Section 5.5
12    of the Illinois Enterprise Zone Act, a taxpayer shall be
13    allowed a credit against the tax imposed by subsections (a)
14    and (b) of this Section for investment in qualified
15    property which is placed in service by a Department of
16    Commerce and Economic Opportunity designated High Impact
17    Business. The credit shall be .5% of the basis for such
18    property. The credit shall not be available (i) until the
19    minimum investments in qualified property set forth in
20    subdivision (a)(3)(A) of Section 5.5 of the Illinois
21    Enterprise Zone Act have been satisfied or (ii) until the
22    time authorized in subsection (b-5) of the Illinois
23    Enterprise Zone Act for entities designated as High Impact
24    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
25    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
26    Act, and shall not be allowed to the extent that it would

 

 

10000HB2498ham001- 117 -LRB100 03891 MJP 22700 a

1    reduce a taxpayer's liability for the tax imposed by
2    subsections (a) and (b) of this Section to below zero. The
3    credit applicable to such investments shall be taken in the
4    taxable year in which such investments have been completed.
5    The credit for additional investments beyond the minimum
6    investment by a designated high impact business authorized
7    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
8    Enterprise Zone Act shall be available only in the taxable
9    year in which the property is placed in service and shall
10    not be allowed to the extent that it would reduce a
11    taxpayer's liability for the tax imposed by subsections (a)
12    and (b) of this Section to below zero. For tax years ending
13    on or after December 31, 1987, the credit shall be allowed
14    for the tax year in which the property is placed in
15    service, or, if the amount of the credit exceeds the tax
16    liability for that year, whether it exceeds the original
17    liability or the liability as later amended, such excess
18    may be carried forward and applied to the tax liability of
19    the 5 taxable years following the excess credit year. The
20    credit shall be applied to the earliest year for which
21    there is a liability. If there is credit from more than one
22    tax year that is available to offset a liability, the
23    credit accruing first in time shall be applied first.
24        Changes made in this subdivision (h)(1) by Public Act
25    88-670 restore changes made by Public Act 85-1182 and
26    reflect existing law.

 

 

10000HB2498ham001- 118 -LRB100 03891 MJP 22700 a

1        (2) The term qualified property means property which:
2            (A) is tangible, whether new or used, including
3        buildings and structural components of buildings;
4            (B) is depreciable pursuant to Section 167 of the
5        Internal Revenue Code, except that "3-year property"
6        as defined in Section 168(c)(2)(A) of that Code is not
7        eligible for the credit provided by this subsection
8        (h);
9            (C) is acquired by purchase as defined in Section
10        179(d) of the Internal Revenue Code; and
11            (D) is not eligible for the Enterprise Zone
12        Investment Credit provided by subsection (f) of this
13        Section.
14        (3) The basis of qualified property shall be the basis
15    used to compute the depreciation deduction for federal
16    income tax purposes.
17        (4) If the basis of the property for federal income tax
18    depreciation purposes is increased after it has been placed
19    in service in a federally designated Foreign Trade Zone or
20    Sub-Zone located in Illinois by the taxpayer, the amount of
21    such increase shall be deemed property placed in service on
22    the date of such increase in basis.
23        (5) The term "placed in service" shall have the same
24    meaning as under Section 46 of the Internal Revenue Code.
25        (6) If during any taxable year ending on or before
26    December 31, 1996, any property ceases to be qualified

 

 

10000HB2498ham001- 119 -LRB100 03891 MJP 22700 a

1    property in the hands of the taxpayer within 48 months
2    after being placed in service, or the situs of any
3    qualified property is moved outside Illinois within 48
4    months after being placed in service, the tax imposed under
5    subsections (a) and (b) of this Section for such taxable
6    year shall be increased. Such increase shall be determined
7    by (i) recomputing the investment credit which would have
8    been allowed for the year in which credit for such property
9    was originally allowed by eliminating such property from
10    such computation, and (ii) subtracting such recomputed
11    credit from the amount of credit previously allowed. For
12    the purposes of this paragraph (6), a reduction of the
13    basis of qualified property resulting from a
14    redetermination of the purchase price shall be deemed a
15    disposition of qualified property to the extent of such
16    reduction.
17        (7) Beginning with tax years ending after December 31,
18    1996, if a taxpayer qualifies for the credit under this
19    subsection (h) and thereby is granted a tax abatement and
20    the taxpayer relocates its entire facility in violation of
21    the explicit terms and length of the contract under Section
22    18-183 of the Property Tax Code, the tax imposed under
23    subsections (a) and (b) of this Section shall be increased
24    for the taxable year in which the taxpayer relocated its
25    facility by an amount equal to the amount of credit
26    received by the taxpayer under this subsection (h).

 

 

10000HB2498ham001- 120 -LRB100 03891 MJP 22700 a

1    (i) Credit for Personal Property Tax Replacement Income
2Tax. For tax years ending prior to December 31, 2003, a credit
3shall be allowed against the tax imposed by subsections (a) and
4(b) of this Section for the tax imposed by subsections (c) and
5(d) of this Section. This credit shall be computed by
6multiplying the tax imposed by subsections (c) and (d) of this
7Section by a fraction, the numerator of which is base income
8allocable to Illinois and the denominator of which is Illinois
9base income, and further multiplying the product by the tax
10rate imposed by subsections (a) and (b) of this Section.
11    Any credit earned on or after December 31, 1986 under this
12subsection which is unused in the year the credit is computed
13because it exceeds the tax liability imposed by subsections (a)
14and (b) for that year (whether it exceeds the original
15liability or the liability as later amended) may be carried
16forward and applied to the tax liability imposed by subsections
17(a) and (b) of the 5 taxable years following the excess credit
18year, provided that no credit may be carried forward to any
19year ending on or after December 31, 2003. This credit shall be
20applied first to the earliest year for which there is a
21liability. If there is a credit under this subsection from more
22than one tax year that is available to offset a liability the
23earliest credit arising under this subsection shall be applied
24first.
25    If, during any taxable year ending on or after December 31,
261986, the tax imposed by subsections (c) and (d) of this

 

 

10000HB2498ham001- 121 -LRB100 03891 MJP 22700 a

1Section for which a taxpayer has claimed a credit under this
2subsection (i) is reduced, the amount of credit for such tax
3shall also be reduced. Such reduction shall be determined by
4recomputing the credit to take into account the reduced tax
5imposed by subsections (c) and (d). If any portion of the
6reduced amount of credit has been carried to a different
7taxable year, an amended return shall be filed for such taxable
8year to reduce the amount of credit claimed.
9    (j) Training expense credit. Beginning with tax years
10ending on or after December 31, 1986 and prior to December 31,
112003, a taxpayer shall be allowed a credit against the tax
12imposed by subsections (a) and (b) under this Section for all
13amounts paid or accrued, on behalf of all persons employed by
14the taxpayer in Illinois or Illinois residents employed outside
15of Illinois by a taxpayer, for educational or vocational
16training in semi-technical or technical fields or semi-skilled
17or skilled fields, which were deducted from gross income in the
18computation of taxable income. The credit against the tax
19imposed by subsections (a) and (b) shall be 1.6% of such
20training expenses. For partners, shareholders of subchapter S
21corporations, and owners of limited liability companies, if the
22liability company is treated as a partnership for purposes of
23federal and State income taxation, there shall be allowed a
24credit under this subsection (j) to be determined in accordance
25with the determination of income and distributive share of
26income under Sections 702 and 704 and subchapter S of the

 

 

10000HB2498ham001- 122 -LRB100 03891 MJP 22700 a

1Internal Revenue Code.
2    Any credit allowed under this subsection which is unused in
3the year the credit is earned may be carried forward to each of
4the 5 taxable years following the year for which the credit is
5first computed until it is used. This credit shall be applied
6first to the earliest year for which there is a liability. If
7there is a credit under this subsection from more than one tax
8year that is available to offset a liability the earliest
9credit arising under this subsection shall be applied first. No
10carryforward credit may be claimed in any tax year ending on or
11after December 31, 2003.
12    (k) Research and development credit. For tax years ending
13after July 1, 1990 and prior to December 31, 2003, and
14beginning again for tax years ending on or after December 31,
152004, and ending prior to January 1, 2016, a taxpayer shall be
16allowed a credit against the tax imposed by subsections (a) and
17(b) of this Section for increasing research activities in this
18State. The credit allowed against the tax imposed by
19subsections (a) and (b) shall be equal to 6 1/2% of the
20qualifying expenditures for increasing research activities in
21this State. For partners, shareholders of subchapter S
22corporations, and owners of limited liability companies, if the
23liability company is treated as a partnership for purposes of
24federal and State income taxation, there shall be allowed a
25credit under this subsection to be determined in accordance
26with the determination of income and distributive share of

 

 

10000HB2498ham001- 123 -LRB100 03891 MJP 22700 a

1income under Sections 702 and 704 and subchapter S of the
2Internal Revenue Code.
3    For purposes of this subsection, "qualifying expenditures"
4means the qualifying expenditures as defined for the federal
5credit for increasing research activities which would be
6allowable under Section 41 of the Internal Revenue Code and
7which are conducted in this State, "qualifying expenditures for
8increasing research activities in this State" means the excess
9of qualifying expenditures for the taxable year in which
10incurred over qualifying expenditures for the base period,
11"qualifying expenditures for the base period" means the average
12of the qualifying expenditures for each year in the base
13period, and "base period" means the 3 taxable years immediately
14preceding the taxable year for which the determination is being
15made.
16    Any credit in excess of the tax liability for the taxable
17year may be carried forward. A taxpayer may elect to have the
18unused credit shown on its final completed return carried over
19as a credit against the tax liability for the following 5
20taxable years or until it has been fully used, whichever occurs
21first; provided that no credit earned in a tax year ending
22prior to December 31, 2003 may be carried forward to any year
23ending on or after December 31, 2003.
24    If an unused credit is carried forward to a given year from
252 or more earlier years, that credit arising in the earliest
26year will be applied first against the tax liability for the

 

 

10000HB2498ham001- 124 -LRB100 03891 MJP 22700 a

1given year. If a tax liability for the given year still
2remains, the credit from the next earliest year will then be
3applied, and so on, until all credits have been used or no tax
4liability for the given year remains. Any remaining unused
5credit or credits then will be carried forward to the next
6following year in which a tax liability is incurred, except
7that no credit can be carried forward to a year which is more
8than 5 years after the year in which the expense for which the
9credit is given was incurred.
10    No inference shall be drawn from this amendatory Act of the
1191st General Assembly in construing this Section for taxable
12years beginning before January 1, 1999.
13    (l) Environmental Remediation Tax Credit.
14        (i) For tax years ending after December 31, 1997 and on
15    or before December 31, 2001, a taxpayer shall be allowed a
16    credit against the tax imposed by subsections (a) and (b)
17    of this Section for certain amounts paid for unreimbursed
18    eligible remediation costs, as specified in this
19    subsection. For purposes of this Section, "unreimbursed
20    eligible remediation costs" means costs approved by the
21    Illinois Environmental Protection Agency ("Agency") under
22    Section 58.14 of the Environmental Protection Act that were
23    paid in performing environmental remediation at a site for
24    which a No Further Remediation Letter was issued by the
25    Agency and recorded under Section 58.10 of the
26    Environmental Protection Act. The credit must be claimed

 

 

10000HB2498ham001- 125 -LRB100 03891 MJP 22700 a

1    for the taxable year in which Agency approval of the
2    eligible remediation costs is granted. The credit is not
3    available to any taxpayer if the taxpayer or any related
4    party caused or contributed to, in any material respect, a
5    release of regulated substances on, in, or under the site
6    that was identified and addressed by the remedial action
7    pursuant to the Site Remediation Program of the
8    Environmental Protection Act. After the Pollution Control
9    Board rules are adopted pursuant to the Illinois
10    Administrative Procedure Act for the administration and
11    enforcement of Section 58.9 of the Environmental
12    Protection Act, determinations as to credit availability
13    for purposes of this Section shall be made consistent with
14    those rules. For purposes of this Section, "taxpayer"
15    includes a person whose tax attributes the taxpayer has
16    succeeded to under Section 381 of the Internal Revenue Code
17    and "related party" includes the persons disallowed a
18    deduction for losses by paragraphs (b), (c), and (f)(1) of
19    Section 267 of the Internal Revenue Code by virtue of being
20    a related taxpayer, as well as any of its partners. The
21    credit allowed against the tax imposed by subsections (a)
22    and (b) shall be equal to 25% of the unreimbursed eligible
23    remediation costs in excess of $100,000 per site, except
24    that the $100,000 threshold shall not apply to any site
25    contained in an enterprise zone as determined by the
26    Department of Commerce and Community Affairs (now

 

 

10000HB2498ham001- 126 -LRB100 03891 MJP 22700 a

1    Department of Commerce and Economic Opportunity). The
2    total credit allowed shall not exceed $40,000 per year with
3    a maximum total of $150,000 per site. For partners and
4    shareholders of subchapter S corporations, there shall be
5    allowed a credit under this subsection to be determined in
6    accordance with the determination of income and
7    distributive share of income under Sections 702 and 704 and
8    subchapter S of the Internal Revenue Code.
9        (ii) A credit allowed under this subsection that is
10    unused in the year the credit is earned may be carried
11    forward to each of the 5 taxable years following the year
12    for which the credit is first earned until it is used. The
13    term "unused credit" does not include any amounts of
14    unreimbursed eligible remediation costs in excess of the
15    maximum credit per site authorized under paragraph (i).
16    This credit shall be applied first to the earliest year for
17    which there is a liability. If there is a credit under this
18    subsection from more than one tax year that is available to
19    offset a liability, the earliest credit arising under this
20    subsection shall be applied first. A credit allowed under
21    this subsection may be sold to a buyer as part of a sale of
22    all or part of the remediation site for which the credit
23    was granted. The purchaser of a remediation site and the
24    tax credit shall succeed to the unused credit and remaining
25    carry-forward period of the seller. To perfect the
26    transfer, the assignor shall record the transfer in the

 

 

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1    chain of title for the site and provide written notice to
2    the Director of the Illinois Department of Revenue of the
3    assignor's intent to sell the remediation site and the
4    amount of the tax credit to be transferred as a portion of
5    the sale. In no event may a credit be transferred to any
6    taxpayer if the taxpayer or a related party would not be
7    eligible under the provisions of subsection (i).
8        (iii) For purposes of this Section, the term "site"
9    shall have the same meaning as under Section 58.2 of the
10    Environmental Protection Act.
11    (m) Education expense credit. Beginning with tax years
12ending after December 31, 1999, a taxpayer who is the custodian
13of one or more qualifying pupils shall be allowed a credit
14against the tax imposed by subsections (a) and (b) of this
15Section for qualified education expenses incurred on behalf of
16the qualifying pupils. The credit shall be equal to 25% of
17qualified education expenses, but in no event may the total
18credit under this subsection claimed by a family that is the
19custodian of qualifying pupils exceed $500. In no event shall a
20credit under this subsection reduce the taxpayer's liability
21under this Act to less than zero. This subsection is exempt
22from the provisions of Section 250 of this Act.
23    For purposes of this subsection:
24    "Qualifying pupils" means individuals who (i) are
25residents of the State of Illinois, (ii) are under the age of
2621 at the close of the school year for which a credit is

 

 

10000HB2498ham001- 128 -LRB100 03891 MJP 22700 a

1sought, and (iii) during the school year for which a credit is
2sought were full-time pupils enrolled in a kindergarten through
3twelfth grade education program at any school, as defined in
4this subsection.
5    "Qualified education expense" means the amount incurred on
6behalf of a qualifying pupil in excess of $250 for tuition,
7book fees, and lab fees at the school in which the pupil is
8enrolled during the regular school year.
9    "School" means any public or nonpublic elementary or
10secondary school in Illinois that is in compliance with Title
11VI of the Civil Rights Act of 1964 and attendance at which
12satisfies the requirements of Section 26-1 of the School Code,
13except that nothing shall be construed to require a child to
14attend any particular public or nonpublic school to qualify for
15the credit under this Section.
16    "Custodian" means, with respect to qualifying pupils, an
17Illinois resident who is a parent, the parents, a legal
18guardian, or the legal guardians of the qualifying pupils.
19    (n) River Edge Redevelopment Zone site remediation tax
20credit.
21        (i) For tax years ending on or after December 31, 2006,
22    a taxpayer shall be allowed a credit against the tax
23    imposed by subsections (a) and (b) of this Section for
24    certain amounts paid for unreimbursed eligible remediation
25    costs, as specified in this subsection. For purposes of
26    this Section, "unreimbursed eligible remediation costs"

 

 

10000HB2498ham001- 129 -LRB100 03891 MJP 22700 a

1    means costs approved by the Illinois Environmental
2    Protection Agency ("Agency") under Section 58.14a of the
3    Environmental Protection Act that were paid in performing
4    environmental remediation at a site within a River Edge
5    Redevelopment Zone for which a No Further Remediation
6    Letter was issued by the Agency and recorded under Section
7    58.10 of the Environmental Protection Act. The credit must
8    be claimed for the taxable year in which Agency approval of
9    the eligible remediation costs is granted. The credit is
10    not available to any taxpayer if the taxpayer or any
11    related party caused or contributed to, in any material
12    respect, a release of regulated substances on, in, or under
13    the site that was identified and addressed by the remedial
14    action pursuant to the Site Remediation Program of the
15    Environmental Protection Act. Determinations as to credit
16    availability for purposes of this Section shall be made
17    consistent with rules adopted by the Pollution Control
18    Board pursuant to the Illinois Administrative Procedure
19    Act for the administration and enforcement of Section 58.9
20    of the Environmental Protection Act. For purposes of this
21    Section, "taxpayer" includes a person whose tax attributes
22    the taxpayer has succeeded to under Section 381 of the
23    Internal Revenue Code and "related party" includes the
24    persons disallowed a deduction for losses by paragraphs
25    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
26    Code by virtue of being a related taxpayer, as well as any

 

 

10000HB2498ham001- 130 -LRB100 03891 MJP 22700 a

1    of its partners. The credit allowed against the tax imposed
2    by subsections (a) and (b) shall be equal to 25% of the
3    unreimbursed eligible remediation costs in excess of
4    $100,000 per site.
5        (ii) A credit allowed under this subsection that is
6    unused in the year the credit is earned may be carried
7    forward to each of the 5 taxable years following the year
8    for which the credit is first earned until it is used. This
9    credit shall be applied first to the earliest year for
10    which there is a liability. If there is a credit under this
11    subsection from more than one tax year that is available to
12    offset a liability, the earliest credit arising under this
13    subsection shall be applied first. A credit allowed under
14    this subsection may be sold to a buyer as part of a sale of
15    all or part of the remediation site for which the credit
16    was granted. The purchaser of a remediation site and the
17    tax credit shall succeed to the unused credit and remaining
18    carry-forward period of the seller. To perfect the
19    transfer, the assignor shall record the transfer in the
20    chain of title for the site and provide written notice to
21    the Director of the Illinois Department of Revenue of the
22    assignor's intent to sell the remediation site and the
23    amount of the tax credit to be transferred as a portion of
24    the sale. In no event may a credit be transferred to any
25    taxpayer if the taxpayer or a related party would not be
26    eligible under the provisions of subsection (i).

 

 

10000HB2498ham001- 131 -LRB100 03891 MJP 22700 a

1        (iii) For purposes of this Section, the term "site"
2    shall have the same meaning as under Section 58.2 of the
3    Environmental Protection Act.
4    (o) For each of taxable years during the Compassionate Use
5of Medical Cannabis Pilot Program, a surcharge is imposed on
6all taxpayers on income arising from the sale or exchange of
7capital assets, depreciable business property, real property
8used in the trade or business, and Section 197 intangibles of
9an organization registrant under the Compassionate Use of
10Medical Cannabis Pilot Program Act. The amount of the surcharge
11is equal to the amount of federal income tax liability for the
12taxable year attributable to those sales and exchanges. The
13surcharge imposed does not apply if:
14        (1) the medical cannabis cultivation center
15    registration, medical cannabis dispensary registration, or
16    the property of a registration is transferred as a result
17    of any of the following:
18            (A) bankruptcy, a receivership, or a debt
19        adjustment initiated by or against the initial
20        registration or the substantial owners of the initial
21        registration;
22            (B) cancellation, revocation, or termination of
23        any registration by the Illinois Department of Public
24        Health;
25            (C) a determination by the Illinois Department of
26        Public Health that transfer of the registration is in

 

 

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1        the best interests of Illinois qualifying patients as
2        defined by the Compassionate Use of Medical Cannabis
3        Pilot Program Act;
4            (D) the death of an owner of the equity interest in
5        a registrant;
6            (E) the acquisition of a controlling interest in
7        the stock or substantially all of the assets of a
8        publicly traded company;
9            (F) a transfer by a parent company to a wholly
10        owned subsidiary; or
11            (G) the transfer or sale to or by one person to
12        another person where both persons were initial owners
13        of the registration when the registration was issued;
14        or
15        (2) the cannabis cultivation center registration,
16    medical cannabis dispensary registration, or the
17    controlling interest in a registrant's property is
18    transferred in a transaction to lineal descendants in which
19    no gain or loss is recognized or as a result of a
20    transaction in accordance with Section 351 of the Internal
21    Revenue Code in which no gain or loss is recognized.
22(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
23eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
24eff. 7-16-14.)
 
25    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)

 

 

10000HB2498ham001- 133 -LRB100 03891 MJP 22700 a

1    Sec. 303. (a) In general. Any item of capital gain or loss,
2and any item of income from rents or royalties from real or
3tangible personal property, interest, dividends, and patent or
4copyright royalties, and prizes awarded under the Illinois
5Lottery Law, and, for taxable years ending on or after December
631, 2017, wagering and gambling winnings from Illinois sources
7as set forth in subsection (e-1) of this Section, to the extent
8such item constitutes nonbusiness income, together with any
9item of deduction directly allocable thereto, shall be
10allocated by any person other than a resident as provided in
11this Section.
12    (b) Capital gains and losses.
13        (1) Real property. Capital gains and losses from sales
14    or exchanges of real property are allocable to this State
15    if the property is located in this State.
16        (2) Tangible personal property. Capital gains and
17    losses from sales or exchanges of tangible personal
18    property are allocable to this State if, at the time of
19    such sale or exchange:
20            (A) The property had its situs in this State; or
21            (B) The taxpayer had its commercial domicile in
22        this State and was not taxable in the state in which
23        the property had its situs.
24        (3) Intangibles. Capital gains and losses from sales or
25    exchanges of intangible personal property are allocable to
26    this State if the taxpayer had its commercial domicile in

 

 

10000HB2498ham001- 134 -LRB100 03891 MJP 22700 a

1    this State at the time of such sale or exchange.
2    (c) Rents and royalties.
3        (1) Real property. Rents and royalties from real
4    property are allocable to this State if the property is
5    located in this State.
6        (2) Tangible personal property. Rents and royalties
7    from tangible personal property are allocable to this
8    State:
9            (A) If and to the extent that the property is
10        utilized in this State; or
11            (B) In their entirety if, at the time such rents or
12        royalties were paid or accrued, the taxpayer had its
13        commercial domicile in this State and was not organized
14        under the laws of or taxable with respect to such rents
15        or royalties in the state in which the property was
16        utilized. The extent of utilization of tangible
17        personal property in a state is determined by
18        multiplying the rents or royalties derived from such
19        property by a fraction, the numerator of which is the
20        number of days of physical location of the property in
21        the state during the rental or royalty period in the
22        taxable year and the denominator of which is the number
23        of days of physical location of the property everywhere
24        during all rental or royalty periods in the taxable
25        year. If the physical location of the property during
26        the rental or royalty period is unknown or

 

 

10000HB2498ham001- 135 -LRB100 03891 MJP 22700 a

1        unascertainable by the taxpayer, tangible personal
2        property is utilized in the state in which the property
3        was located at the time the rental or royalty payer
4        obtained possession.
5    (d) Patent and copyright royalties.
6        (1) Allocation. Patent and copyright royalties are
7    allocable to this State:
8            (A) If and to the extent that the patent or
9        copyright is utilized by the payer in this State; or
10            (B) If and to the extent that the patent or
11        copyright is utilized by the payer in a state in which
12        the taxpayer is not taxable with respect to such
13        royalties and, at the time such royalties were paid or
14        accrued, the taxpayer had its commercial domicile in
15        this State.
16        (2) Utilization.
17            (A) A patent is utilized in a state to the extent
18        that it is employed in production, fabrication,
19        manufacturing or other processing in the state or to
20        the extent that a patented product is produced in the
21        state. If the basis of receipts from patent royalties
22        does not permit allocation to states or if the
23        accounting procedures do not reflect states of
24        utilization, the patent is utilized in this State if
25        the taxpayer has its commercial domicile in this State.
26            (B) A copyright is utilized in a state to the

 

 

10000HB2498ham001- 136 -LRB100 03891 MJP 22700 a

1        extent that printing or other publication originates
2        in the state. If the basis of receipts from copyright
3        royalties does not permit allocation to states or if
4        the accounting procedures do not reflect states of
5        utilization, the copyright is utilized in this State if
6        the taxpayer has its commercial domicile in this State.
7    (e) Illinois lottery prizes. Prizes awarded under the
8Illinois Lottery Law are allocable to this State. Payments
9received in taxable years ending on or after December 31, 2013,
10from the assignment of a prize under Section 13.1 of the
11Illinois Lottery Law are allocable to this State.
12    (e-1) Wagering and gambling winnings. Payments received in
13taxable years ending on or after December 31, 2017 of winnings
14from pari-mutuel wagering conducted at a wagering facility
15licensed under the Illinois Horse Racing Act of 1975 and from
16gambling games conducted on a riverboat or in a casino or
17electronic gaming facility licensed under the Illinois
18Gambling Act are allocable to this State.
19    (e-5) Unemployment benefits. Unemployment benefits paid by
20the Illinois Department of Employment Security are allocable to
21this State.
22    (f) Taxability in other state. For purposes of allocation
23of income pursuant to this Section, a taxpayer is taxable in
24another state if:
25        (1) In that state he is subject to a net income tax, a
26    franchise tax measured by net income, a franchise tax for

 

 

10000HB2498ham001- 137 -LRB100 03891 MJP 22700 a

1    the privilege of doing business, or a corporate stock tax;
2    or
3        (2) That state has jurisdiction to subject the taxpayer
4    to a net income tax regardless of whether, in fact, the
5    state does or does not.
6    (g) Cross references.
7        (1) For allocation of interest and dividends by persons
8    other than residents, see Section 301(c)(2).
9        (2) For allocation of nonbusiness income by residents,
10    see Section 301(a).
11(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
 
12    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
13    Sec. 304. Business income of persons other than residents.
14    (a) In general. The business income of a person other than
15a resident shall be allocated to this State if such person's
16business income is derived solely from this State. If a person
17other than a resident derives business income from this State
18and one or more other states, then, for tax years ending on or
19before December 30, 1998, and except as otherwise provided by
20this Section, such person's business income shall be
21apportioned to this State by multiplying the income by a
22fraction, the numerator of which is the sum of the property
23factor (if any), the payroll factor (if any) and 200% of the
24sales factor (if any), and the denominator of which is 4
25reduced by the number of factors other than the sales factor

 

 

10000HB2498ham001- 138 -LRB100 03891 MJP 22700 a

1which have a denominator of zero and by an additional 2 if the
2sales factor has a denominator of zero. For tax years ending on
3or after December 31, 1998, and except as otherwise provided by
4this Section, persons other than residents who derive business
5income from this State and one or more other states shall
6compute their apportionment factor by weighting their
7property, payroll, and sales factors as provided in subsection
8(h) of this Section.
9    (1) Property factor.
10        (A) The property factor is a fraction, the numerator of
11    which is the average value of the person's real and
12    tangible personal property owned or rented and used in the
13    trade or business in this State during the taxable year and
14    the denominator of which is the average value of all the
15    person's real and tangible personal property owned or
16    rented and used in the trade or business during the taxable
17    year.
18        (B) Property owned by the person is valued at its
19    original cost. Property rented by the person is valued at 8
20    times the net annual rental rate. Net annual rental rate is
21    the annual rental rate paid by the person less any annual
22    rental rate received by the person from sub-rentals.
23        (C) The average value of property shall be determined
24    by averaging the values at the beginning and ending of the
25    taxable year but the Director may require the averaging of
26    monthly values during the taxable year if reasonably

 

 

10000HB2498ham001- 139 -LRB100 03891 MJP 22700 a

1    required to reflect properly the average value of the
2    person's property.
3    (2) Payroll factor.
4        (A) The payroll factor is a fraction, the numerator of
5    which is the total amount paid in this State during the
6    taxable year by the person for compensation, and the
7    denominator of which is the total compensation paid
8    everywhere during the taxable year.
9        (B) Compensation is paid in this State if:
10            (i) The individual's service is performed entirely
11        within this State;
12            (ii) The individual's service is performed both
13        within and without this State, but the service
14        performed without this State is incidental to the
15        individual's service performed within this State; or
16            (iii) Some of the service is performed within this
17        State and either the base of operations, or if there is
18        no base of operations, the place from which the service
19        is directed or controlled is within this State, or the
20        base of operations or the place from which the service
21        is directed or controlled is not in any state in which
22        some part of the service is performed, but the
23        individual's residence is in this State.
24            (iv) Compensation paid to nonresident professional
25        athletes.
26            (a) General. The Illinois source income of a

 

 

10000HB2498ham001- 140 -LRB100 03891 MJP 22700 a

1        nonresident individual who is a member of a
2        professional athletic team includes the portion of the
3        individual's total compensation for services performed
4        as a member of a professional athletic team during the
5        taxable year which the number of duty days spent within
6        this State performing services for the team in any
7        manner during the taxable year bears to the total
8        number of duty days spent both within and without this
9        State during the taxable year.
10            (b) Travel days. Travel days that do not involve
11        either a game, practice, team meeting, or other similar
12        team event are not considered duty days spent in this
13        State. However, such travel days are considered in the
14        total duty days spent both within and without this
15        State.
16            (c) Definitions. For purposes of this subpart
17        (iv):
18                (1) The term "professional athletic team"
19            includes, but is not limited to, any professional
20            baseball, basketball, football, soccer, or hockey
21            team.
22                (2) The term "member of a professional
23            athletic team" includes those employees who are
24            active players, players on the disabled list, and
25            any other persons required to travel and who travel
26            with and perform services on behalf of a

 

 

10000HB2498ham001- 141 -LRB100 03891 MJP 22700 a

1            professional athletic team on a regular basis.
2            This includes, but is not limited to, coaches,
3            managers, and trainers.
4                (3) Except as provided in items (C) and (D) of
5            this subpart (3), the term "duty days" means all
6            days during the taxable year from the beginning of
7            the professional athletic team's official
8            pre-season training period through the last game
9            in which the team competes or is scheduled to
10            compete. Duty days shall be counted for the year in
11            which they occur, including where a team's
12            official pre-season training period through the
13            last game in which the team competes or is
14            scheduled to compete, occurs during more than one
15            tax year.
16                    (A) Duty days shall also include days on
17                which a member of a professional athletic team
18                performs service for a team on a date that does
19                not fall within the foregoing period (e.g.,
20                participation in instructional leagues, the
21                "All Star Game", or promotional "caravans").
22                Performing a service for a professional
23                athletic team includes conducting training and
24                rehabilitation activities, when such
25                activities are conducted at team facilities.
26                    (B) Also included in duty days are game

 

 

10000HB2498ham001- 142 -LRB100 03891 MJP 22700 a

1                days, practice days, days spent at team
2                meetings, promotional caravans, preseason
3                training camps, and days served with the team
4                through all post-season games in which the team
5                competes or is scheduled to compete.
6                    (C) Duty days for any person who joins a
7                team during the period from the beginning of
8                the professional athletic team's official
9                pre-season training period through the last
10                game in which the team competes, or is
11                scheduled to compete, shall begin on the day
12                that person joins the team. Conversely, duty
13                days for any person who leaves a team during
14                this period shall end on the day that person
15                leaves the team. Where a person switches teams
16                during a taxable year, a separate duty-day
17                calculation shall be made for the period the
18                person was with each team.
19                    (D) Days for which a member of a
20                professional athletic team is not compensated
21                and is not performing services for the team in
22                any manner, including days when such member of
23                a professional athletic team has been
24                suspended without pay and prohibited from
25                performing any services for the team, shall not
26                be treated as duty days.

 

 

10000HB2498ham001- 143 -LRB100 03891 MJP 22700 a

1                    (E) Days for which a member of a
2                professional athletic team is on the disabled
3                list and does not conduct rehabilitation
4                activities at facilities of the team, and is
5                not otherwise performing services for the team
6                in Illinois, shall not be considered duty days
7                spent in this State. All days on the disabled
8                list, however, are considered to be included in
9                total duty days spent both within and without
10                this State.
11                (4) The term "total compensation for services
12            performed as a member of a professional athletic
13            team" means the total compensation received during
14            the taxable year for services performed:
15                    (A) from the beginning of the official
16                pre-season training period through the last
17                game in which the team competes or is scheduled
18                to compete during that taxable year; and
19                    (B) during the taxable year on a date which
20                does not fall within the foregoing period
21                (e.g., participation in instructional leagues,
22                the "All Star Game", or promotional caravans).
23                This compensation shall include, but is not
24            limited to, salaries, wages, bonuses as described
25            in this subpart, and any other type of compensation
26            paid during the taxable year to a member of a

 

 

10000HB2498ham001- 144 -LRB100 03891 MJP 22700 a

1            professional athletic team for services performed
2            in that year. This compensation does not include
3            strike benefits, severance pay, termination pay,
4            contract or option year buy-out payments,
5            expansion or relocation payments, or any other
6            payments not related to services performed for the
7            team.
8                For purposes of this subparagraph, "bonuses"
9            included in "total compensation for services
10            performed as a member of a professional athletic
11            team" subject to the allocation described in
12            Section 302(c)(1) are: bonuses earned as a result
13            of play (i.e., performance bonuses) during the
14            season, including bonuses paid for championship,
15            playoff or "bowl" games played by a team, or for
16            selection to all-star league or other honorary
17            positions; and bonuses paid for signing a
18            contract, unless the payment of the signing bonus
19            is not conditional upon the signee playing any
20            games for the team or performing any subsequent
21            services for the team or even making the team, the
22            signing bonus is payable separately from the
23            salary and any other compensation, and the signing
24            bonus is nonrefundable.
25    (3) Sales factor.
26        (A) The sales factor is a fraction, the numerator of

 

 

10000HB2498ham001- 145 -LRB100 03891 MJP 22700 a

1    which is the total sales of the person in this State during
2    the taxable year, and the denominator of which is the total
3    sales of the person everywhere during the taxable year.
4        (B) Sales of tangible personal property are in this
5    State if:
6            (i) The property is delivered or shipped to a
7        purchaser, other than the United States government,
8        within this State regardless of the f. o. b. point or
9        other conditions of the sale; or
10            (ii) The property is shipped from an office, store,
11        warehouse, factory or other place of storage in this
12        State and either the purchaser is the United States
13        government or the person is not taxable in the state of
14        the purchaser; provided, however, that premises owned
15        or leased by a person who has independently contracted
16        with the seller for the printing of newspapers,
17        periodicals or books shall not be deemed to be an
18        office, store, warehouse, factory or other place of
19        storage for purposes of this Section. Sales of tangible
20        personal property are not in this State if the seller
21        and purchaser would be members of the same unitary
22        business group but for the fact that either the seller
23        or purchaser is a person with 80% or more of total
24        business activity outside of the United States and the
25        property is purchased for resale.
26        (B-1) Patents, copyrights, trademarks, and similar

 

 

10000HB2498ham001- 146 -LRB100 03891 MJP 22700 a

1    items of intangible personal property.
2            (i) Gross receipts from the licensing, sale, or
3        other disposition of a patent, copyright, trademark,
4        or similar item of intangible personal property, other
5        than gross receipts governed by paragraph (B-7) of this
6        item (3), are in this State to the extent the item is
7        utilized in this State during the year the gross
8        receipts are included in gross income.
9            (ii) Place of utilization.
10                (I) A patent is utilized in a state to the
11            extent that it is employed in production,
12            fabrication, manufacturing, or other processing in
13            the state or to the extent that a patented product
14            is produced in the state. If a patent is utilized
15            in more than one state, the extent to which it is
16            utilized in any one state shall be a fraction equal
17            to the gross receipts of the licensee or purchaser
18            from sales or leases of items produced,
19            fabricated, manufactured, or processed within that
20            state using the patent and of patented items
21            produced within that state, divided by the total of
22            such gross receipts for all states in which the
23            patent is utilized.
24                (II) A copyright is utilized in a state to the
25            extent that printing or other publication
26            originates in the state. If a copyright is utilized

 

 

10000HB2498ham001- 147 -LRB100 03891 MJP 22700 a

1            in more than one state, the extent to which it is
2            utilized in any one state shall be a fraction equal
3            to the gross receipts from sales or licenses of
4            materials printed or published in that state
5            divided by the total of such gross receipts for all
6            states in which the copyright is utilized.
7                (III) Trademarks and other items of intangible
8            personal property governed by this paragraph (B-1)
9            are utilized in the state in which the commercial
10            domicile of the licensee or purchaser is located.
11            (iii) If the state of utilization of an item of
12        property governed by this paragraph (B-1) cannot be
13        determined from the taxpayer's books and records or
14        from the books and records of any person related to the
15        taxpayer within the meaning of Section 267(b) of the
16        Internal Revenue Code, 26 U.S.C. 267, the gross
17        receipts attributable to that item shall be excluded
18        from both the numerator and the denominator of the
19        sales factor.
20        (B-2) Gross receipts from the license, sale, or other
21    disposition of patents, copyrights, trademarks, and
22    similar items of intangible personal property, other than
23    gross receipts governed by paragraph (B-7) of this item
24    (3), may be included in the numerator or denominator of the
25    sales factor only if gross receipts from licenses, sales,
26    or other disposition of such items comprise more than 50%

 

 

10000HB2498ham001- 148 -LRB100 03891 MJP 22700 a

1    of the taxpayer's total gross receipts included in gross
2    income during the tax year and during each of the 2
3    immediately preceding tax years; provided that, when a
4    taxpayer is a member of a unitary business group, such
5    determination shall be made on the basis of the gross
6    receipts of the entire unitary business group.
7        (B-5) For taxable years ending on or after December 31,
8    2008, except as provided in subsections (ii) through (vii),
9    receipts from the sale of telecommunications service or
10    mobile telecommunications service are in this State if the
11    customer's service address is in this State.
12            (i) For purposes of this subparagraph (B-5), the
13        following terms have the following meanings:
14            "Ancillary services" means services that are
15        associated with or incidental to the provision of
16        "telecommunications services", including but not
17        limited to "detailed telecommunications billing",
18        "directory assistance", "vertical service", and "voice
19        mail services".
20            "Air-to-Ground Radiotelephone service" means a
21        radio service, as that term is defined in 47 CFR 22.99,
22        in which common carriers are authorized to offer and
23        provide radio telecommunications service for hire to
24        subscribers in aircraft.
25            "Call-by-call Basis" means any method of charging
26        for telecommunications services where the price is

 

 

10000HB2498ham001- 149 -LRB100 03891 MJP 22700 a

1        measured by individual calls.
2            "Communications Channel" means a physical or
3        virtual path of communications over which signals are
4        transmitted between or among customer channel
5        termination points.
6            "Conference bridging service" means an "ancillary
7        service" that links two or more participants of an
8        audio or video conference call and may include the
9        provision of a telephone number. "Conference bridging
10        service" does not include the "telecommunications
11        services" used to reach the conference bridge.
12            "Customer Channel Termination Point" means the
13        location where the customer either inputs or receives
14        the communications.
15            "Detailed telecommunications billing service"
16        means an "ancillary service" of separately stating
17        information pertaining to individual calls on a
18        customer's billing statement.
19            "Directory assistance" means an "ancillary
20        service" of providing telephone number information,
21        and/or address information.
22            "Home service provider" means the facilities based
23        carrier or reseller with which the customer contracts
24        for the provision of mobile telecommunications
25        services.
26            "Mobile telecommunications service" means

 

 

10000HB2498ham001- 150 -LRB100 03891 MJP 22700 a

1        commercial mobile radio service, as defined in Section
2        20.3 of Title 47 of the Code of Federal Regulations as
3        in effect on June 1, 1999.
4            "Place of primary use" means the street address
5        representative of where the customer's use of the
6        telecommunications service primarily occurs, which
7        must be the residential street address or the primary
8        business street address of the customer. In the case of
9        mobile telecommunications services, "place of primary
10        use" must be within the licensed service area of the
11        home service provider.
12            "Post-paid telecommunication service" means the
13        telecommunications service obtained by making a
14        payment on a call-by-call basis either through the use
15        of a credit card or payment mechanism such as a bank
16        card, travel card, credit card, or debit card, or by
17        charge made to a telephone number which is not
18        associated with the origination or termination of the
19        telecommunications service. A post-paid calling
20        service includes telecommunications service, except a
21        prepaid wireless calling service, that would be a
22        prepaid calling service except it is not exclusively a
23        telecommunication service.
24            "Prepaid telecommunication service" means the
25        right to access exclusively telecommunications
26        services, which must be paid for in advance and which

 

 

10000HB2498ham001- 151 -LRB100 03891 MJP 22700 a

1        enables the origination of calls using an access number
2        or authorization code, whether manually or
3        electronically dialed, and that is sold in
4        predetermined units or dollars of which the number
5        declines with use in a known amount.
6            "Prepaid Mobile telecommunication service" means a
7        telecommunications service that provides the right to
8        utilize mobile wireless service as well as other
9        non-telecommunication services, including but not
10        limited to ancillary services, which must be paid for
11        in advance that is sold in predetermined units or
12        dollars of which the number declines with use in a
13        known amount.
14            "Private communication service" means a
15        telecommunication service that entitles the customer
16        to exclusive or priority use of a communications
17        channel or group of channels between or among
18        termination points, regardless of the manner in which
19        such channel or channels are connected, and includes
20        switching capacity, extension lines, stations, and any
21        other associated services that are provided in
22        connection with the use of such channel or channels.
23            "Service address" means:
24                (a) The location of the telecommunications
25            equipment to which a customer's call is charged and
26            from which the call originates or terminates,

 

 

10000HB2498ham001- 152 -LRB100 03891 MJP 22700 a

1            regardless of where the call is billed or paid;
2                (b) If the location in line (a) is not known,
3            service address means the origination point of the
4            signal of the telecommunications services first
5            identified by either the seller's
6            telecommunications system or in information
7            received by the seller from its service provider
8            where the system used to transport such signals is
9            not that of the seller; and
10                (c) If the locations in line (a) and line (b)
11            are not known, the service address means the
12            location of the customer's place of primary use.
13            "Telecommunications service" means the electronic
14        transmission, conveyance, or routing of voice, data,
15        audio, video, or any other information or signals to a
16        point, or between or among points. The term
17        "telecommunications service" includes such
18        transmission, conveyance, or routing in which computer
19        processing applications are used to act on the form,
20        code or protocol of the content for purposes of
21        transmission, conveyance or routing without regard to
22        whether such service is referred to as voice over
23        Internet protocol services or is classified by the
24        Federal Communications Commission as enhanced or value
25        added. "Telecommunications service" does not include:
26                (a) Data processing and information services

 

 

10000HB2498ham001- 153 -LRB100 03891 MJP 22700 a

1            that allow data to be generated, acquired, stored,
2            processed, or retrieved and delivered by an
3            electronic transmission to a purchaser when such
4            purchaser's primary purpose for the underlying
5            transaction is the processed data or information;
6                (b) Installation or maintenance of wiring or
7            equipment on a customer's premises;
8                (c) Tangible personal property;
9                (d) Advertising, including but not limited to
10            directory advertising; .
11                (e) Billing and collection services provided
12            to third parties;
13                (f) Internet access service;
14                (g) Radio and television audio and video
15            programming services, regardless of the medium,
16            including the furnishing of transmission,
17            conveyance and routing of such services by the
18            programming service provider. Radio and television
19            audio and video programming services shall include
20            but not be limited to cable service as defined in
21            47 USC 522(6) and audio and video programming
22            services delivered by commercial mobile radio
23            service providers, as defined in 47 CFR 20.3;
24                (h) "Ancillary services"; or
25                (i) Digital products "delivered
26            electronically", including but not limited to

 

 

10000HB2498ham001- 154 -LRB100 03891 MJP 22700 a

1            software, music, video, reading materials or ring
2            tones.
3            "Vertical service" means an "ancillary service"
4        that is offered in connection with one or more
5        "telecommunications services", which offers advanced
6        calling features that allow customers to identify
7        callers and to manage multiple calls and call
8        connections, including "conference bridging services".
9            "Voice mail service" means an "ancillary service"
10        that enables the customer to store, send or receive
11        recorded messages. "Voice mail service" does not
12        include any "vertical services" that the customer may
13        be required to have in order to utilize the "voice mail
14        service".
15            (ii) Receipts from the sale of telecommunications
16        service sold on an individual call-by-call basis are in
17        this State if either of the following applies:
18                (a) The call both originates and terminates in
19            this State.
20                (b) The call either originates or terminates
21            in this State and the service address is located in
22            this State.
23            (iii) Receipts from the sale of postpaid
24        telecommunications service at retail are in this State
25        if the origination point of the telecommunication
26        signal, as first identified by the service provider's

 

 

10000HB2498ham001- 155 -LRB100 03891 MJP 22700 a

1        telecommunication system or as identified by
2        information received by the seller from its service
3        provider if the system used to transport
4        telecommunication signals is not the seller's, is
5        located in this State.
6            (iv) Receipts from the sale of prepaid
7        telecommunications service or prepaid mobile
8        telecommunications service at retail are in this State
9        if the purchaser obtains the prepaid card or similar
10        means of conveyance at a location in this State.
11        Receipts from recharging a prepaid telecommunications
12        service or mobile telecommunications service is in
13        this State if the purchaser's billing information
14        indicates a location in this State.
15            (v) Receipts from the sale of private
16        communication services are in this State as follows:
17                (a) 100% of receipts from charges imposed at
18            each channel termination point in this State.
19                (b) 100% of receipts from charges for the total
20            channel mileage between each channel termination
21            point in this State.
22                (c) 50% of the total receipts from charges for
23            service segments when those segments are between 2
24            customer channel termination points, 1 of which is
25            located in this State and the other is located
26            outside of this State, which segments are

 

 

10000HB2498ham001- 156 -LRB100 03891 MJP 22700 a

1            separately charged.
2                (d) The receipts from charges for service
3            segments with a channel termination point located
4            in this State and in two or more other states, and
5            which segments are not separately billed, are in
6            this State based on a percentage determined by
7            dividing the number of customer channel
8            termination points in this State by the total
9            number of customer channel termination points.
10            (vi) Receipts from charges for ancillary services
11        for telecommunications service sold to customers at
12        retail are in this State if the customer's primary
13        place of use of telecommunications services associated
14        with those ancillary services is in this State. If the
15        seller of those ancillary services cannot determine
16        where the associated telecommunications are located,
17        then the ancillary services shall be based on the
18        location of the purchaser.
19            (vii) Receipts to access a carrier's network or
20        from the sale of telecommunication services or
21        ancillary services for resale are in this State as
22        follows:
23                (a) 100% of the receipts from access fees
24            attributable to intrastate telecommunications
25            service that both originates and terminates in
26            this State.

 

 

10000HB2498ham001- 157 -LRB100 03891 MJP 22700 a

1                (b) 50% of the receipts from access fees
2            attributable to interstate telecommunications
3            service if the interstate call either originates
4            or terminates in this State.
5                (c) 100% of the receipts from interstate end
6            user access line charges, if the customer's
7            service address is in this State. As used in this
8            subdivision, "interstate end user access line
9            charges" includes, but is not limited to, the
10            surcharge approved by the federal communications
11            commission and levied pursuant to 47 CFR 69.
12                (d) Gross receipts from sales of
13            telecommunication services or from ancillary
14            services for telecommunications services sold to
15            other telecommunication service providers for
16            resale shall be sourced to this State using the
17            apportionment concepts used for non-resale
18            receipts of telecommunications services if the
19            information is readily available to make that
20            determination. If the information is not readily
21            available, then the taxpayer may use any other
22            reasonable and consistent method.
23        (B-7) For taxable years ending on or after December 31,
24    2008, receipts from the sale of broadcasting services are
25    in this State if the broadcasting services are received in
26    this State. For purposes of this paragraph (B-7), the

 

 

10000HB2498ham001- 158 -LRB100 03891 MJP 22700 a

1    following terms have the following meanings:
2            "Advertising revenue" means consideration received
3        by the taxpayer in exchange for broadcasting services
4        or allowing the broadcasting of commercials or
5        announcements in connection with the broadcasting of
6        film or radio programming, from sponsorships of the
7        programming, or from product placements in the
8        programming.
9            "Audience factor" means the ratio that the
10        audience or subscribers located in this State of a
11        station, a network, or a cable system bears to the
12        total audience or total subscribers for that station,
13        network, or cable system. The audience factor for film
14        or radio programming shall be determined by reference
15        to the books and records of the taxpayer or by
16        reference to published rating statistics provided the
17        method used by the taxpayer is consistently used from
18        year to year for this purpose and fairly represents the
19        taxpayer's activity in this State.
20            "Broadcast" or "broadcasting" or "broadcasting
21        services" means the transmission or provision of film
22        or radio programming, whether through the public
23        airwaves, by cable, by direct or indirect satellite
24        transmission, or by any other means of communication,
25        either through a station, a network, or a cable system.
26            "Film" or "film programming" means the broadcast

 

 

10000HB2498ham001- 159 -LRB100 03891 MJP 22700 a

1        on television of any and all performances, events, or
2        productions, including but not limited to news,
3        sporting events, plays, stories, or other literary,
4        commercial, educational, or artistic works, either
5        live or through the use of video tape, disc, or any
6        other type of format or medium. Each episode of a
7        series of films produced for television shall
8        constitute separate "film" notwithstanding that the
9        series relates to the same principal subject and is
10        produced during one or more tax periods.
11            "Radio" or "radio programming" means the broadcast
12        on radio of any and all performances, events, or
13        productions, including but not limited to news,
14        sporting events, plays, stories, or other literary,
15        commercial, educational, or artistic works, either
16        live or through the use of an audio tape, disc, or any
17        other format or medium. Each episode in a series of
18        radio programming produced for radio broadcast shall
19        constitute a separate "radio programming"
20        notwithstanding that the series relates to the same
21        principal subject and is produced during one or more
22        tax periods.
23                (i) In the case of advertising revenue from
24            broadcasting, the customer is the advertiser and
25            the service is received in this State if the
26            commercial domicile of the advertiser is in this

 

 

10000HB2498ham001- 160 -LRB100 03891 MJP 22700 a

1            State.
2                (ii) In the case where film or radio
3            programming is broadcast by a station, a network,
4            or a cable system for a fee or other remuneration
5            received from the recipient of the broadcast, the
6            portion of the service that is received in this
7            State is measured by the portion of the recipients
8            of the broadcast located in this State.
9            Accordingly, the fee or other remuneration for
10            such service that is included in the Illinois
11            numerator of the sales factor is the total of those
12            fees or other remuneration received from
13            recipients in Illinois. For purposes of this
14            paragraph, a taxpayer may determine the location
15            of the recipients of its broadcast using the
16            address of the recipient shown in its contracts
17            with the recipient or using the billing address of
18            the recipient in the taxpayer's records.
19                (iii) In the case where film or radio
20            programming is broadcast by a station, a network,
21            or a cable system for a fee or other remuneration
22            from the person providing the programming, the
23            portion of the broadcast service that is received
24            by such station, network, or cable system in this
25            State is measured by the portion of recipients of
26            the broadcast located in this State. Accordingly,

 

 

10000HB2498ham001- 161 -LRB100 03891 MJP 22700 a

1            the amount of revenue related to such an
2            arrangement that is included in the Illinois
3            numerator of the sales factor is the total fee or
4            other total remuneration from the person providing
5            the programming related to that broadcast
6            multiplied by the Illinois audience factor for
7            that broadcast.
8                (iv) In the case where film or radio
9            programming is provided by a taxpayer that is a
10            network or station to a customer for broadcast in
11            exchange for a fee or other remuneration from that
12            customer the broadcasting service is received at
13            the location of the office of the customer from
14            which the services were ordered in the regular
15            course of the customer's trade or business.
16            Accordingly, in such a case the revenue derived by
17            the taxpayer that is included in the taxpayer's
18            Illinois numerator of the sales factor is the
19            revenue from such customers who receive the
20            broadcasting service in Illinois.
21                (v) In the case where film or radio programming
22            is provided by a taxpayer that is not a network or
23            station to another person for broadcasting in
24            exchange for a fee or other remuneration from that
25            person, the broadcasting service is received at
26            the location of the office of the customer from

 

 

10000HB2498ham001- 162 -LRB100 03891 MJP 22700 a

1            which the services were ordered in the regular
2            course of the customer's trade or business.
3            Accordingly, in such a case the revenue derived by
4            the taxpayer that is included in the taxpayer's
5            Illinois numerator of the sales factor is the
6            revenue from such customers who receive the
7            broadcasting service in Illinois.
8        (B-8) Gross receipts from winnings under the Illinois
9    Lottery Law from the assignment of a prize under Section
10    13.1 of the Illinois Lottery Law are received in this
11    State. This paragraph (B-8) applies only to taxable years
12    ending on or after December 31, 2013.
13        (B-9) For taxable years ending on or after December 31,
14    2017, gross receipts from winnings from pari-mutuel
15    wagering conducted at a wagering facility licensed under
16    the Illinois Horse Racing Act of 1975 or from winnings from
17    gambling games conducted on a riverboat or in a casino or
18    electronic gaming facility licensed under the Illinois
19    Gambling Act are in this State.
20        (C) For taxable years ending before December 31, 2008,
21    sales, other than sales governed by paragraphs (B), (B-1),
22    (B-2), and (B-8) are in this State if:
23            (i) The income-producing activity is performed in
24        this State; or
25            (ii) The income-producing activity is performed
26        both within and without this State and a greater

 

 

10000HB2498ham001- 163 -LRB100 03891 MJP 22700 a

1        proportion of the income-producing activity is
2        performed within this State than without this State,
3        based on performance costs.
4        (C-5) For taxable years ending on or after December 31,
5    2008, sales, other than sales governed by paragraphs (B),
6    (B-1), (B-2), (B-5), and (B-7), are in this State if any of
7    the following criteria are met:
8            (i) Sales from the sale or lease of real property
9        are in this State if the property is located in this
10        State.
11            (ii) Sales from the lease or rental of tangible
12        personal property are in this State if the property is
13        located in this State during the rental period. Sales
14        from the lease or rental of tangible personal property
15        that is characteristically moving property, including,
16        but not limited to, motor vehicles, rolling stock,
17        aircraft, vessels, or mobile equipment are in this
18        State to the extent that the property is used in this
19        State.
20            (iii) In the case of interest, net gains (but not
21        less than zero) and other items of income from
22        intangible personal property, the sale is in this State
23        if:
24                (a) in the case of a taxpayer who is a dealer
25            in the item of intangible personal property within
26            the meaning of Section 475 of the Internal Revenue

 

 

10000HB2498ham001- 164 -LRB100 03891 MJP 22700 a

1            Code, the income or gain is received from a
2            customer in this State. For purposes of this
3            subparagraph, a customer is in this State if the
4            customer is an individual, trust or estate who is a
5            resident of this State and, for all other
6            customers, if the customer's commercial domicile
7            is in this State. Unless the dealer has actual
8            knowledge of the residence or commercial domicile
9            of a customer during a taxable year, the customer
10            shall be deemed to be a customer in this State if
11            the billing address of the customer, as shown in
12            the records of the dealer, is in this State; or
13                (b) in all other cases, if the
14            income-producing activity of the taxpayer is
15            performed in this State or, if the
16            income-producing activity of the taxpayer is
17            performed both within and without this State, if a
18            greater proportion of the income-producing
19            activity of the taxpayer is performed within this
20            State than in any other state, based on performance
21            costs.
22            (iv) Sales of services are in this State if the
23        services are received in this State. For the purposes
24        of this section, gross receipts from the performance of
25        services provided to a corporation, partnership, or
26        trust may only be attributed to a state where that

 

 

10000HB2498ham001- 165 -LRB100 03891 MJP 22700 a

1        corporation, partnership, or trust has a fixed place of
2        business. If the state where the services are received
3        is not readily determinable or is a state where the
4        corporation, partnership, or trust receiving the
5        service does not have a fixed place of business, the
6        services shall be deemed to be received at the location
7        of the office of the customer from which the services
8        were ordered in the regular course of the customer's
9        trade or business. If the ordering office cannot be
10        determined, the services shall be deemed to be received
11        at the office of the customer to which the services are
12        billed. If the taxpayer is not taxable in the state in
13        which the services are received, the sale must be
14        excluded from both the numerator and the denominator of
15        the sales factor. The Department shall adopt rules
16        prescribing where specific types of service are
17        received, including, but not limited to, publishing,
18        and utility service.
19        (D) For taxable years ending on or after December 31,
20    1995, the following items of income shall not be included
21    in the numerator or denominator of the sales factor:
22    dividends; amounts included under Section 78 of the
23    Internal Revenue Code; and Subpart F income as defined in
24    Section 952 of the Internal Revenue Code. No inference
25    shall be drawn from the enactment of this paragraph (D) in
26    construing this Section for taxable years ending before

 

 

10000HB2498ham001- 166 -LRB100 03891 MJP 22700 a

1    December 31, 1995.
2        (E) Paragraphs (B-1) and (B-2) shall apply to tax years
3    ending on or after December 31, 1999, provided that a
4    taxpayer may elect to apply the provisions of these
5    paragraphs to prior tax years. Such election shall be made
6    in the form and manner prescribed by the Department, shall
7    be irrevocable, and shall apply to all tax years; provided
8    that, if a taxpayer's Illinois income tax liability for any
9    tax year, as assessed under Section 903 prior to January 1,
10    1999, was computed in a manner contrary to the provisions
11    of paragraphs (B-1) or (B-2), no refund shall be payable to
12    the taxpayer for that tax year to the extent such refund is
13    the result of applying the provisions of paragraph (B-1) or
14    (B-2) retroactively. In the case of a unitary business
15    group, such election shall apply to all members of such
16    group for every tax year such group is in existence, but
17    shall not apply to any taxpayer for any period during which
18    that taxpayer is not a member of such group.
19    (b) Insurance companies.
20        (1) In general. Except as otherwise provided by
21    paragraph (2), business income of an insurance company for
22    a taxable year shall be apportioned to this State by
23    multiplying such income by a fraction, the numerator of
24    which is the direct premiums written for insurance upon
25    property or risk in this State, and the denominator of
26    which is the direct premiums written for insurance upon

 

 

10000HB2498ham001- 167 -LRB100 03891 MJP 22700 a

1    property or risk everywhere. For purposes of this
2    subsection, the term "direct premiums written" means the
3    total amount of direct premiums written, assessments and
4    annuity considerations as reported for the taxable year on
5    the annual statement filed by the company with the Illinois
6    Director of Insurance in the form approved by the National
7    Convention of Insurance Commissioners or such other form as
8    may be prescribed in lieu thereof.
9        (2) Reinsurance. If the principal source of premiums
10    written by an insurance company consists of premiums for
11    reinsurance accepted by it, the business income of such
12    company shall be apportioned to this State by multiplying
13    such income by a fraction, the numerator of which is the
14    sum of (i) direct premiums written for insurance upon
15    property or risk in this State, plus (ii) premiums written
16    for reinsurance accepted in respect of property or risk in
17    this State, and the denominator of which is the sum of
18    (iii) direct premiums written for insurance upon property
19    or risk everywhere, plus (iv) premiums written for
20    reinsurance accepted in respect of property or risk
21    everywhere. For purposes of this paragraph, premiums
22    written for reinsurance accepted in respect of property or
23    risk in this State, whether or not otherwise determinable,
24    may, at the election of the company, be determined on the
25    basis of the proportion which premiums written for
26    reinsurance accepted from companies commercially domiciled

 

 

10000HB2498ham001- 168 -LRB100 03891 MJP 22700 a

1    in Illinois bears to premiums written for reinsurance
2    accepted from all sources, or, alternatively, in the
3    proportion which the sum of the direct premiums written for
4    insurance upon property or risk in this State by each
5    ceding company from which reinsurance is accepted bears to
6    the sum of the total direct premiums written by each such
7    ceding company for the taxable year. The election made by a
8    company under this paragraph for its first taxable year
9    ending on or after December 31, 2011, shall be binding for
10    that company for that taxable year and for all subsequent
11    taxable years, and may be altered only with the written
12    permission of the Department, which shall not be
13    unreasonably withheld.
14    (c) Financial organizations.
15        (1) In general. For taxable years ending before
16    December 31, 2008, business income of a financial
17    organization shall be apportioned to this State by
18    multiplying such income by a fraction, the numerator of
19    which is its business income from sources within this
20    State, and the denominator of which is its business income
21    from all sources. For the purposes of this subsection, the
22    business income of a financial organization from sources
23    within this State is the sum of the amounts referred to in
24    subparagraphs (A) through (E) following, but excluding the
25    adjusted income of an international banking facility as
26    determined in paragraph (2):

 

 

10000HB2498ham001- 169 -LRB100 03891 MJP 22700 a

1            (A) Fees, commissions or other compensation for
2        financial services rendered within this State;
3            (B) Gross profits from trading in stocks, bonds or
4        other securities managed within this State;
5            (C) Dividends, and interest from Illinois
6        customers, which are received within this State;
7            (D) Interest charged to customers at places of
8        business maintained within this State for carrying
9        debit balances of margin accounts, without deduction
10        of any costs incurred in carrying such accounts; and
11            (E) Any other gross income resulting from the
12        operation as a financial organization within this
13        State. In computing the amounts referred to in
14        paragraphs (A) through (E) of this subsection, any
15        amount received by a member of an affiliated group
16        (determined under Section 1504(a) of the Internal
17        Revenue Code but without reference to whether any such
18        corporation is an "includible corporation" under
19        Section 1504(b) of the Internal Revenue Code) from
20        another member of such group shall be included only to
21        the extent such amount exceeds expenses of the
22        recipient directly related thereto.
23        (2) International Banking Facility. For taxable years
24    ending before December 31, 2008:
25            (A) Adjusted Income. The adjusted income of an
26        international banking facility is its income reduced

 

 

10000HB2498ham001- 170 -LRB100 03891 MJP 22700 a

1        by the amount of the floor amount.
2            (B) Floor Amount. The floor amount shall be the
3        amount, if any, determined by multiplying the income of
4        the international banking facility by a fraction, not
5        greater than one, which is determined as follows:
6                (i) The numerator shall be:
7                The average aggregate, determined on a
8            quarterly basis, of the financial organization's
9            loans to banks in foreign countries, to foreign
10            domiciled borrowers (except where secured
11            primarily by real estate) and to foreign
12            governments and other foreign official
13            institutions, as reported for its branches,
14            agencies and offices within the state on its
15            "Consolidated Report of Condition", Schedule A,
16            Lines 2.c., 5.b., and 7.a., which was filed with
17            the Federal Deposit Insurance Corporation and
18            other regulatory authorities, for the year 1980,
19            minus
20                The average aggregate, determined on a
21            quarterly basis, of such loans (other than loans of
22            an international banking facility), as reported by
23            the financial institution for its branches,
24            agencies and offices within the state, on the
25            corresponding Schedule and lines of the
26            Consolidated Report of Condition for the current

 

 

10000HB2498ham001- 171 -LRB100 03891 MJP 22700 a

1            taxable year, provided, however, that in no case
2            shall the amount determined in this clause (the
3            subtrahend) exceed the amount determined in the
4            preceding clause (the minuend); and
5                (ii) the denominator shall be the average
6            aggregate, determined on a quarterly basis, of the
7            international banking facility's loans to banks in
8            foreign countries, to foreign domiciled borrowers
9            (except where secured primarily by real estate)
10            and to foreign governments and other foreign
11            official institutions, which were recorded in its
12            financial accounts for the current taxable year.
13            (C) Change to Consolidated Report of Condition and
14        in Qualification. In the event the Consolidated Report
15        of Condition which is filed with the Federal Deposit
16        Insurance Corporation and other regulatory authorities
17        is altered so that the information required for
18        determining the floor amount is not found on Schedule
19        A, lines 2.c., 5.b. and 7.a., the financial institution
20        shall notify the Department and the Department may, by
21        regulations or otherwise, prescribe or authorize the
22        use of an alternative source for such information. The
23        financial institution shall also notify the Department
24        should its international banking facility fail to
25        qualify as such, in whole or in part, or should there
26        be any amendment or change to the Consolidated Report

 

 

10000HB2498ham001- 172 -LRB100 03891 MJP 22700 a

1        of Condition, as originally filed, to the extent such
2        amendment or change alters the information used in
3        determining the floor amount.
4        (3) For taxable years ending on or after December 31,
5    2008, the business income of a financial organization shall
6    be apportioned to this State by multiplying such income by
7    a fraction, the numerator of which is its gross receipts
8    from sources in this State or otherwise attributable to
9    this State's marketplace and the denominator of which is
10    its gross receipts everywhere during the taxable year.
11    "Gross receipts" for purposes of this subparagraph (3)
12    means gross income, including net taxable gain on
13    disposition of assets, including securities and money
14    market instruments, when derived from transactions and
15    activities in the regular course of the financial
16    organization's trade or business. The following examples
17    are illustrative:
18            (i) Receipts from the lease or rental of real or
19        tangible personal property are in this State if the
20        property is located in this State during the rental
21        period. Receipts from the lease or rental of tangible
22        personal property that is characteristically moving
23        property, including, but not limited to, motor
24        vehicles, rolling stock, aircraft, vessels, or mobile
25        equipment are from sources in this State to the extent
26        that the property is used in this State.

 

 

10000HB2498ham001- 173 -LRB100 03891 MJP 22700 a

1            (ii) Interest income, commissions, fees, gains on
2        disposition, and other receipts from assets in the
3        nature of loans that are secured primarily by real
4        estate or tangible personal property are from sources
5        in this State if the security is located in this State.
6            (iii) Interest income, commissions, fees, gains on
7        disposition, and other receipts from consumer loans
8        that are not secured by real or tangible personal
9        property are from sources in this State if the debtor
10        is a resident of this State.
11            (iv) Interest income, commissions, fees, gains on
12        disposition, and other receipts from commercial loans
13        and installment obligations that are not secured by
14        real or tangible personal property are from sources in
15        this State if the proceeds of the loan are to be
16        applied in this State. If it cannot be determined where
17        the funds are to be applied, the income and receipts
18        are from sources in this State if the office of the
19        borrower from which the loan was negotiated in the
20        regular course of business is located in this State. If
21        the location of this office cannot be determined, the
22        income and receipts shall be excluded from the
23        numerator and denominator of the sales factor.
24            (v) Interest income, fees, gains on disposition,
25        service charges, merchant discount income, and other
26        receipts from credit card receivables are from sources

 

 

10000HB2498ham001- 174 -LRB100 03891 MJP 22700 a

1        in this State if the card charges are regularly billed
2        to a customer in this State.
3            (vi) Receipts from the performance of services,
4        including, but not limited to, fiduciary, advisory,
5        and brokerage services, are in this State if the
6        services are received in this State within the meaning
7        of subparagraph (a)(3)(C-5)(iv) of this Section.
8            (vii) Receipts from the issuance of travelers
9        checks and money orders are from sources in this State
10        if the checks and money orders are issued from a
11        location within this State.
12            (viii) Receipts from investment assets and
13        activities and trading assets and activities are
14        included in the receipts factor as follows:
15                (1) Interest, dividends, net gains (but not
16            less than zero) and other income from investment
17            assets and activities from trading assets and
18            activities shall be included in the receipts
19            factor. Investment assets and activities and
20            trading assets and activities include but are not
21            limited to: investment securities; trading account
22            assets; federal funds; securities purchased and
23            sold under agreements to resell or repurchase;
24            options; futures contracts; forward contracts;
25            notional principal contracts such as swaps;
26            equities; and foreign currency transactions. With

 

 

10000HB2498ham001- 175 -LRB100 03891 MJP 22700 a

1            respect to the investment and trading assets and
2            activities described in subparagraphs (A) and (B)
3            of this paragraph, the receipts factor shall
4            include the amounts described in such
5            subparagraphs.
6                    (A) The receipts factor shall include the
7                amount by which interest from federal funds
8                sold and securities purchased under resale
9                agreements exceeds interest expense on federal
10                funds purchased and securities sold under
11                repurchase agreements.
12                    (B) The receipts factor shall include the
13                amount by which interest, dividends, gains and
14                other income from trading assets and
15                activities, including but not limited to
16                assets and activities in the matched book, in
17                the arbitrage book, and foreign currency
18                transactions, exceed amounts paid in lieu of
19                interest, amounts paid in lieu of dividends,
20                and losses from such assets and activities.
21                (2) The numerator of the receipts factor
22            includes interest, dividends, net gains (but not
23            less than zero), and other income from investment
24            assets and activities and from trading assets and
25            activities described in paragraph (1) of this
26            subsection that are attributable to this State.

 

 

10000HB2498ham001- 176 -LRB100 03891 MJP 22700 a

1                    (A) The amount of interest, dividends, net
2                gains (but not less than zero), and other
3                income from investment assets and activities
4                in the investment account to be attributed to
5                this State and included in the numerator is
6                determined by multiplying all such income from
7                such assets and activities by a fraction, the
8                numerator of which is the gross income from
9                such assets and activities which are properly
10                assigned to a fixed place of business of the
11                taxpayer within this State and the denominator
12                of which is the gross income from all such
13                assets and activities.
14                    (B) The amount of interest from federal
15                funds sold and purchased and from securities
16                purchased under resale agreements and
17                securities sold under repurchase agreements
18                attributable to this State and included in the
19                numerator is determined by multiplying the
20                amount described in subparagraph (A) of
21                paragraph (1) of this subsection from such
22                funds and such securities by a fraction, the
23                numerator of which is the gross income from
24                such funds and such securities which are
25                properly assigned to a fixed place of business
26                of the taxpayer within this State and the

 

 

10000HB2498ham001- 177 -LRB100 03891 MJP 22700 a

1                denominator of which is the gross income from
2                all such funds and such securities.
3                    (C) The amount of interest, dividends,
4                gains, and other income from trading assets and
5                activities, including but not limited to
6                assets and activities in the matched book, in
7                the arbitrage book and foreign currency
8                transactions (but excluding amounts described
9                in subparagraphs (A) or (B) of this paragraph),
10                attributable to this State and included in the
11                numerator is determined by multiplying the
12                amount described in subparagraph (B) of
13                paragraph (1) of this subsection by a fraction,
14                the numerator of which is the gross income from
15                such trading assets and activities which are
16                properly assigned to a fixed place of business
17                of the taxpayer within this State and the
18                denominator of which is the gross income from
19                all such assets and activities.
20                    (D) Properly assigned, for purposes of
21                this paragraph (2) of this subsection, means
22                the investment or trading asset or activity is
23                assigned to the fixed place of business with
24                which it has a preponderance of substantive
25                contacts. An investment or trading asset or
26                activity assigned by the taxpayer to a fixed

 

 

10000HB2498ham001- 178 -LRB100 03891 MJP 22700 a

1                place of business without the State shall be
2                presumed to have been properly assigned if:
3                        (i) the taxpayer has assigned, in the
4                    regular course of its business, such asset
5                    or activity on its records to a fixed place
6                    of business consistent with federal or
7                    state regulatory requirements;
8                        (ii) such assignment on its records is
9                    based upon substantive contacts of the
10                    asset or activity to such fixed place of
11                    business; and
12                        (iii) the taxpayer uses such records
13                    reflecting assignment of such assets or
14                    activities for the filing of all state and
15                    local tax returns for which an assignment
16                    of such assets or activities to a fixed
17                    place of business is required.
18                    (E) The presumption of proper assignment
19                of an investment or trading asset or activity
20                provided in subparagraph (D) of paragraph (2)
21                of this subsection may be rebutted upon a
22                showing by the Department, supported by a
23                preponderance of the evidence, that the
24                preponderance of substantive contacts
25                regarding such asset or activity did not occur
26                at the fixed place of business to which it was

 

 

10000HB2498ham001- 179 -LRB100 03891 MJP 22700 a

1                assigned on the taxpayer's records. If the
2                fixed place of business that has a
3                preponderance of substantive contacts cannot
4                be determined for an investment or trading
5                asset or activity to which the presumption in
6                subparagraph (D) of paragraph (2) of this
7                subsection does not apply or with respect to
8                which that presumption has been rebutted, that
9                asset or activity is properly assigned to the
10                state in which the taxpayer's commercial
11                domicile is located. For purposes of this
12                subparagraph (E), it shall be presumed,
13                subject to rebuttal, that taxpayer's
14                commercial domicile is in the state of the
15                United States or the District of Columbia to
16                which the greatest number of employees are
17                regularly connected with the management of the
18                investment or trading income or out of which
19                they are working, irrespective of where the
20                services of such employees are performed, as of
21                the last day of the taxable year.
22        (4) (Blank).
23        (5) (Blank).
24    (c-1) Federally regulated exchanges. For taxable years
25ending on or after December 31, 2012, business income of a
26federally regulated exchange shall, at the option of the

 

 

10000HB2498ham001- 180 -LRB100 03891 MJP 22700 a

1federally regulated exchange, be apportioned to this State by
2multiplying such income by a fraction, the numerator of which
3is its business income from sources within this State, and the
4denominator of which is its business income from all sources.
5For purposes of this subsection, the business income within
6this State of a federally regulated exchange is the sum of the
7following:
8        (1) Receipts attributable to transactions executed on
9    a physical trading floor if that physical trading floor is
10    located in this State.
11        (2) Receipts attributable to all other matching,
12    execution, or clearing transactions, including without
13    limitation receipts from the provision of matching,
14    execution, or clearing services to another entity,
15    multiplied by (i) for taxable years ending on or after
16    December 31, 2012 but before December 31, 2013, 63.77%; and
17    (ii) for taxable years ending on or after December 31,
18    2013, 27.54%.
19        (3) All other receipts not governed by subparagraphs
20    (1) or (2) of this subsection (c-1), to the extent the
21    receipts would be characterized as "sales in this State"
22    under item (3) of subsection (a) of this Section.
23    "Federally regulated exchange" means (i) a "registered
24entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
25or (C), (ii) an "exchange" or "clearing agency" within the
26meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such

 

 

10000HB2498ham001- 181 -LRB100 03891 MJP 22700 a

1entities regulated under any successor regulatory structure to
2the foregoing, and (iv) all taxpayers who are members of the
3same unitary business group as a federally regulated exchange,
4determined without regard to the prohibition in Section
51501(a)(27) of this Act against including in a unitary business
6group taxpayers who are ordinarily required to apportion
7business income under different subsections of this Section;
8provided that this subparagraph (iv) shall apply only if 50% or
9more of the business receipts of the unitary business group
10determined by application of this subparagraph (iv) for the
11taxable year are attributable to the matching, execution, or
12clearing of transactions conducted by an entity described in
13subparagraph (i), (ii), or (iii) of this paragraph.
14    In no event shall the Illinois apportionment percentage
15computed in accordance with this subsection (c-1) for any
16taxpayer for any tax year be less than the Illinois
17apportionment percentage computed under this subsection (c-1)
18for that taxpayer for the first full tax year ending on or
19after December 31, 2013 for which this subsection (c-1) applied
20to the taxpayer.
21    (d) Transportation services. For taxable years ending
22before December 31, 2008, business income derived from
23furnishing transportation services shall be apportioned to
24this State in accordance with paragraphs (1) and (2):
25        (1) Such business income (other than that derived from
26    transportation by pipeline) shall be apportioned to this

 

 

10000HB2498ham001- 182 -LRB100 03891 MJP 22700 a

1    State by multiplying such income by a fraction, the
2    numerator of which is the revenue miles of the person in
3    this State, and the denominator of which is the revenue
4    miles of the person everywhere. For purposes of this
5    paragraph, a revenue mile is the transportation of 1
6    passenger or 1 net ton of freight the distance of 1 mile
7    for a consideration. Where a person is engaged in the
8    transportation of both passengers and freight, the
9    fraction above referred to shall be determined by means of
10    an average of the passenger revenue mile fraction and the
11    freight revenue mile fraction, weighted to reflect the
12    person's
13            (A) relative railway operating income from total
14        passenger and total freight service, as reported to the
15        Interstate Commerce Commission, in the case of
16        transportation by railroad, and
17            (B) relative gross receipts from passenger and
18        freight transportation, in case of transportation
19        other than by railroad.
20        (2) Such business income derived from transportation
21    by pipeline shall be apportioned to this State by
22    multiplying such income by a fraction, the numerator of
23    which is the revenue miles of the person in this State, and
24    the denominator of which is the revenue miles of the person
25    everywhere. For the purposes of this paragraph, a revenue
26    mile is the transportation by pipeline of 1 barrel of oil,

 

 

10000HB2498ham001- 183 -LRB100 03891 MJP 22700 a

1    1,000 cubic feet of gas, or of any specified quantity of
2    any other substance, the distance of 1 mile for a
3    consideration.
4        (3) For taxable years ending on or after December 31,
5    2008, business income derived from providing
6    transportation services other than airline services shall
7    be apportioned to this State by using a fraction, (a) the
8    numerator of which shall be (i) all receipts from any
9    movement or shipment of people, goods, mail, oil, gas, or
10    any other substance (other than by airline) that both
11    originates and terminates in this State, plus (ii) that
12    portion of the person's gross receipts from movements or
13    shipments of people, goods, mail, oil, gas, or any other
14    substance (other than by airline) that originates in one
15    state or jurisdiction and terminates in another state or
16    jurisdiction, that is determined by the ratio that the
17    miles traveled in this State bears to total miles
18    everywhere and (b) the denominator of which shall be all
19    revenue derived from the movement or shipment of people,
20    goods, mail, oil, gas, or any other substance (other than
21    by airline). Where a taxpayer is engaged in the
22    transportation of both passengers and freight, the
23    fraction above referred to shall first be determined
24    separately for passenger miles and freight miles. Then an
25    average of the passenger miles fraction and the freight
26    miles fraction shall be weighted to reflect the taxpayer's:

 

 

10000HB2498ham001- 184 -LRB100 03891 MJP 22700 a

1            (A) relative railway operating income from total
2        passenger and total freight service, as reported to the
3        Surface Transportation Board, in the case of
4        transportation by railroad; and
5            (B) relative gross receipts from passenger and
6        freight transportation, in case of transportation
7        other than by railroad.
8        (4) For taxable years ending on or after December 31,
9    2008, business income derived from furnishing airline
10    transportation services shall be apportioned to this State
11    by multiplying such income by a fraction, the numerator of
12    which is the revenue miles of the person in this State, and
13    the denominator of which is the revenue miles of the person
14    everywhere. For purposes of this paragraph, a revenue mile
15    is the transportation of one passenger or one net ton of
16    freight the distance of one mile for a consideration. If a
17    person is engaged in the transportation of both passengers
18    and freight, the fraction above referred to shall be
19    determined by means of an average of the passenger revenue
20    mile fraction and the freight revenue mile fraction,
21    weighted to reflect the person's relative gross receipts
22    from passenger and freight airline transportation.
23    (e) Combined apportionment. Where 2 or more persons are
24engaged in a unitary business as described in subsection
25(a)(27) of Section 1501, a part of which is conducted in this
26State by one or more members of the group, the business income

 

 

10000HB2498ham001- 185 -LRB100 03891 MJP 22700 a

1attributable to this State by any such member or members shall
2be apportioned by means of the combined apportionment method.
3    (f) Alternative allocation. If the allocation and
4apportionment provisions of subsections (a) through (e) and of
5subsection (h) do not, for taxable years ending before December
631, 2008, fairly represent the extent of a person's business
7activity in this State, or, for taxable years ending on or
8after December 31, 2008, fairly represent the market for the
9person's goods, services, or other sources of business income,
10the person may petition for, or the Director may, without a
11petition, permit or require, in respect of all or any part of
12the person's business activity, if reasonable:
13        (1) Separate accounting;
14        (2) The exclusion of any one or more factors;
15        (3) The inclusion of one or more additional factors
16    which will fairly represent the person's business
17    activities or market in this State; or
18        (4) The employment of any other method to effectuate an
19    equitable allocation and apportionment of the person's
20    business income.
21    (g) Cross reference. For allocation of business income by
22residents, see Section 301(a).
23    (h) For tax years ending on or after December 31, 1998, the
24apportionment factor of persons who apportion their business
25income to this State under subsection (a) shall be equal to:
26        (1) for tax years ending on or after December 31, 1998

 

 

10000HB2498ham001- 186 -LRB100 03891 MJP 22700 a

1    and before December 31, 1999, 16 2/3% of the property
2    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
3    the sales factor;
4        (2) for tax years ending on or after December 31, 1999
5    and before December 31, 2000, 8 1/3% of the property factor
6    plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
7    factor;
8        (3) for tax years ending on or after December 31, 2000,
9    the sales factor.
10If, in any tax year ending on or after December 31, 1998 and
11before December 31, 2000, the denominator of the payroll,
12property, or sales factor is zero, the apportionment factor
13computed in paragraph (1) or (2) of this subsection for that
14year shall be divided by an amount equal to 100% minus the
15percentage weight given to each factor whose denominator is
16equal to zero.
17(Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,
18eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)
 
19    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
20    Sec. 710. Withholding from lottery winnings.
21    (a) In general.
22        (1) Any person making a payment to a resident or
23    nonresident of winnings under the Illinois Lottery Law and
24    not required to withhold Illinois income tax from such
25    payment under Subsection (b) of Section 701 of this Act

 

 

10000HB2498ham001- 187 -LRB100 03891 MJP 22700 a

1    because those winnings are not subject to Federal income
2    tax withholding, must withhold Illinois income tax from
3    such payment at a rate equal to the percentage tax rate for
4    individuals provided in subsection (b) of Section 201,
5    provided that withholding is not required if such payment
6    of winnings is less than $1,000.
7        (2) In the case of an assignment of a lottery prize
8    under Section 13.1 of the Illinois Lottery Law, any person
9    making a payment of the purchase price after December 31,
10    2013, shall withhold from the amount of each payment at a
11    rate equal to the percentage tax rate for individuals
12    provided in subsection (b) of Section 201.
13        (3) Any person making a payment after December 31, 2017
14    to a resident or nonresident of winnings from pari-mutuel
15    wagering conducted at a wagering facility licensed under
16    the Illinois Horse Racing Act of 1975 or from gambling
17    games conducted on a riverboat or in a casino or electronic
18    gaming facility licensed under the Illinois Gambling Act
19    must withhold Illinois income tax from such payment at a
20    rate equal to the percentage tax rate for individuals
21    provided in subsection (b) of Section 201, provided that
22    the person making the payment is required to withhold under
23    Section 3402(q) of the Internal Revenue Code.
24    (b) Credit for taxes withheld. Any amount withheld under
25Subsection (a) shall be a credit against the Illinois income
26tax liability of the person to whom the payment of winnings was

 

 

10000HB2498ham001- 188 -LRB100 03891 MJP 22700 a

1made for the taxable year in which that person incurred an
2Illinois income tax liability with respect to those winnings.
3(Source: P.A. 98-496, eff. 1-1-14.)
 
4    Section 90-23. The Property Tax Code is amended by adding
5Section 15-144 as follows:
 
6    (35 ILCS 200/15-144 new)
7    Sec. 15-144. Chicago Casino Development Authority. All
8property owned by the Chicago Casino Development Authority is
9exempt. Any property owned by the Chicago Casino Development
10Authority and leased to any other entity is not exempt.
 
11    Section 90-24. The Illinois Municipal Code is amended by
12adding Section 8-10-2.6 as follows:
 
13    (65 ILCS 5/8-10-2.6 new)
14    Sec. 8-10-2.6. Chicago Casino Development Authority.
15Except as otherwise provided in the Chicago Casino Development
16Authority Act, this Division 10 applies to purchase orders and
17contracts relating to the Chicago Casino Development
18Authority.
 
19    Section 90-25. The Joliet Regional Port District Act is
20amended by changing Section 5.1 as follows:
 

 

 

10000HB2498ham001- 189 -LRB100 03891 MJP 22700 a

1    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
2    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
3any other provision of this Act, the District may not regulate
4the operation, conduct, or navigation of any riverboat gambling
5casino licensed under the Illinois Riverboat Gambling Act, and
6the District may not license, tax, or otherwise levy any
7assessment of any kind on any riverboat gambling casino
8licensed under the Illinois Riverboat Gambling Act. The General
9Assembly declares that the powers to regulate the operation,
10conduct, and navigation of riverboat gambling casinos and to
11license, tax, and levy assessments upon riverboat gambling
12casinos are exclusive powers of the State of Illinois and the
13Illinois Gaming Board as provided in the Illinois Riverboat
14Gambling Act.
15(Source: P.A. 87-1175.)
 
16    Section 90-30. The Consumer Installment Loan Act is amended
17by changing Section 12.5 as follows:
 
18    (205 ILCS 670/12.5)
19    Sec. 12.5. Limited purpose branch.
20    (a) Upon the written approval of the Director, a licensee
21may maintain a limited purpose branch for the sole purpose of
22making loans as permitted by this Act. A limited purpose branch
23may include an automatic loan machine. No other activity shall
24be conducted at the site, including but not limited to,

 

 

10000HB2498ham001- 190 -LRB100 03891 MJP 22700 a

1accepting payments, servicing the accounts, or collections.
2    (b) The licensee must submit an application for a limited
3purpose branch to the Director on forms prescribed by the
4Director with an application fee of $300. The approval for the
5limited purpose branch must be renewed concurrently with the
6renewal of the licensee's license along with a renewal fee of
7$300 for the limited purpose branch.
8    (c) The books, accounts, records, and files of the limited
9purpose branch's transactions shall be maintained at the
10licensee's licensed location. The licensee shall notify the
11Director of the licensed location at which the books, accounts,
12records, and files shall be maintained.
13    (d) The licensee shall prominently display at the limited
14purpose branch the address and telephone number of the
15licensee's licensed location.
16    (e) No other business shall be conducted at the site of the
17limited purpose branch unless authorized by the Director.
18    (f) The Director shall make and enforce reasonable rules
19for the conduct of a limited purpose branch.
20    (g) A limited purpose branch may not be located within
211,000 feet of a facility operated by an inter-track wagering
22licensee or an organization licensee subject to the Illinois
23Horse Racing Act of 1975, on a riverboat or in a casino subject
24to the Illinois Riverboat Gambling Act, or within 1,000 feet of
25the location at which the riverboat docks or within 1,000 feet
26of a casino.

 

 

10000HB2498ham001- 191 -LRB100 03891 MJP 22700 a

1(Source: P.A. 90-437, eff. 1-1-98.)
 
2    Section 90-35. The Illinois Horse Racing Act of 1975 is
3amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
420, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,
5and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
634.3, and 56 as follows:
 
7    (230 ILCS 5/1.2)
8    Sec. 1.2. Legislative intent. This Act is intended to
9benefit the people of the State of Illinois by encouraging the
10breeding and production of race horses, assisting economic
11development and promoting Illinois tourism. The General
12Assembly finds and declares it to be the public policy of the
13State of Illinois to:
14    (a) support and enhance Illinois' horse racing industry,
15which is a significant component within the agribusiness
16industry;
17    (b) ensure that Illinois' horse racing industry remains
18competitive with neighboring states;
19    (c) stimulate growth within Illinois' horse racing
20industry, thereby encouraging new investment and development
21to produce additional tax revenues and to create additional
22jobs;
23    (d) promote the further growth of tourism;
24    (e) encourage the breeding of thoroughbred and

 

 

10000HB2498ham001- 192 -LRB100 03891 MJP 22700 a

1standardbred horses in this State; and
2    (f) ensure that public confidence and trust in the
3credibility and integrity of racing operations and the
4regulatory process is maintained.
5(Source: P.A. 91-40, eff. 6-25-99.)
 
6    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
7    Sec. 3.11. "Organization Licensee" means any person
8receiving an organization license from the Board to conduct a
9race meeting or meetings. With respect only to electronic
10gaming, "organization licensee" includes the authorization for
11an electronic gaming license under subsection (a) of Section 56
12of this Act.
13(Source: P.A. 79-1185.)
 
14    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
15    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
16system of wagering" means a form of wagering on the outcome of
17horse races in which wagers are made in various denominations
18on a horse or horses and all wagers for each race are pooled
19and held by a licensee for distribution in a manner approved by
20the Board. "Pari-mutuel system of wagering" shall not include
21wagering on historic races. Wagers may be placed via any method
22or at any location authorized under this Act.
23(Source: P.A. 96-762, eff. 8-25-09.)
 

 

 

10000HB2498ham001- 193 -LRB100 03891 MJP 22700 a

1    (230 ILCS 5/3.31 new)
2    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
3receipts" means the gross receipts less winnings paid to
4wagerers.
 
5    (230 ILCS 5/3.32 new)
6    Sec. 3.32. Gross receipts. "Gross receipts" means the total
7amount of money exchanged for the purchase of chips, tokens, or
8electronic cards by riverboat or casino patrons or electronic
9gaming patrons.
 
10    (230 ILCS 5/3.33 new)
11    Sec. 3.33. Electronic gaming. "Electronic gaming" means
12slot machine gambling or gambling with table games positioned
13within an electronic gaming facility as defined in the Illinois
14Gambling Act or defined by the Illinois Gaming Board that is
15conducted at a race track pursuant to an electronic gaming
16license.
 
17    (230 ILCS 5/3.35 new)
18    Sec. 3.35. Electronic gaming license. "Electronic gaming
19license" means a license issued by the Illinois Gaming Board
20under Section 7.7 of the Illinois Gambling Act authorizing
21electronic gaming at an electronic gaming facility.
 
22    (230 ILCS 5/3.36 new)

 

 

10000HB2498ham001- 194 -LRB100 03891 MJP 22700 a

1    Sec. 3.36. Electronic gaming facility. "Electronic gaming
2facility" means that portion of an organization licensee's race
3track facility at which electronic gaming is conducted.
 
4    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
5    Sec. 6. Restrictions on Board members.
6    (a) No person shall be appointed a member of the Board or
7continue to be a member of the Board if the person or any
8member of their immediate family is a member of the Board of
9Directors, employee, or financially interested in any of the
10following: (i) any licensee or other person who has applied for
11racing dates to the Board, or the operations thereof including,
12but not limited to, concessions, data processing, track
13maintenance, track security, and pari-mutuel operations,
14located, scheduled or doing business within the State of
15Illinois, (ii) any race horse competing at a meeting under the
16Board's jurisdiction, or (iii) any licensee under the Illinois
17Gambling Act. No person shall be appointed a member of the
18Board or continue to be a member of the Board who is (or any
19member of whose family is) a member of the Board of Directors
20of, or who is a person financially interested in, any licensee
21or other person who has applied for racing dates to the Board,
22or the operations thereof including, but not limited to,
23concessions, data processing, track maintenance, track
24security and pari-mutuel operations, located, scheduled or
25doing business within the State of Illinois, or in any race

 

 

10000HB2498ham001- 195 -LRB100 03891 MJP 22700 a

1horse competing at a meeting under the Board's jurisdiction. No
2Board member shall hold any other public office for which he
3shall receive compensation other than necessary travel or other
4incidental expenses.
5    (b) No person shall be a member of the Board who is not of
6good moral character or who has been convicted of, or is under
7indictment for, a felony under the laws of Illinois or any
8other state, or the United States.
9    (c) No member of the Board or employee shall engage in any
10political activity.
11    For the purposes of this subsection (c):
12    "Political" means any activity in support of or in
13connection with any campaign for State or local elective office
14or any political organization, but does not include activities
15(i) relating to the support or opposition of any executive,
16legislative, or administrative action (as those terms are
17defined in Section 2 of the Lobbyist Registration Act), (ii)
18relating to collective bargaining, or (iii) that are otherwise
19in furtherance of the person's official State duties or
20governmental and public service functions.
21    "Political organization" means a party, committee,
22association, fund, or other organization (whether or not
23incorporated) that is required to file a statement of
24organization with the State Board of Elections or county clerk
25under Section 9-3 of the Election Code, but only with regard to
26those activities that require filing with the State Board of

 

 

10000HB2498ham001- 196 -LRB100 03891 MJP 22700 a

1Elections or county clerk.
2    (d) Board members and employees may not engage in
3communications or any activity that may cause or have the
4appearance of causing a conflict of interest. A conflict of
5interest exists if a situation influences or creates the
6appearance that it may influence judgment or performance of
7regulatory duties and responsibilities. This prohibition shall
8extend to any act identified by Board action that, in the
9judgment of the Board, could represent the potential for or the
10appearance of a conflict of interest.
11    (e) Board members and employees may not accept any gift,
12gratuity, service, compensation, travel, lodging, or thing of
13value, with the exception of unsolicited items of an incidental
14nature, from any person, corporation, limited liability
15company, or entity doing business with the Board.
16    (f) A Board member or employee shall not use or attempt to
17use his or her official position to secure, or attempt to
18secure, any privilege, advantage, favor, or influence for
19himself or herself or others. No Board member or employee,
20within a period of one year immediately preceding nomination by
21the Governor or employment, shall have been employed or
22received compensation or fees for services from a person or
23entity, or its parent or affiliate, that has engaged in
24business with the Board, a licensee or a licensee under the
25Illinois Gambling Act. In addition, all Board members and
26employees are subject to the restrictions set forth in Section

 

 

10000HB2498ham001- 197 -LRB100 03891 MJP 22700 a

15-45 of the State Officials and Employees Ethics Act.
2(Source: P.A. 89-16, eff. 5-30-95.)
 
3    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
4    Sec. 9. The Board shall have all powers necessary and
5proper to fully and effectively execute the provisions of this
6Act, including, but not limited to, the following:
7    (a) The Board is vested with jurisdiction and supervision
8over all race meetings in this State, over all licensees doing
9business in this State, over all occupation licensees, and over
10all persons on the facilities of any licensee. Such
11jurisdiction shall include the power to issue licenses to the
12Illinois Department of Agriculture authorizing the pari-mutuel
13system of wagering on harness and Quarter Horse races held (1)
14at the Illinois State Fair in Sangamon County, and (2) at the
15DuQuoin State Fair in Perry County. The jurisdiction of the
16Board shall also include the power to issue licenses to county
17fairs which are eligible to receive funds pursuant to the
18Agricultural Fair Act, as now or hereafter amended, or their
19agents, authorizing the pari-mutuel system of wagering on horse
20races conducted at the county fairs receiving such licenses.
21Such licenses shall be governed by subsection (n) of this
22Section.
23    Upon application, the Board shall issue a license to the
24Illinois Department of Agriculture to conduct harness and
25Quarter Horse races at the Illinois State Fair and at the

 

 

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1DuQuoin State Fairgrounds during the scheduled dates of each
2fair. The Board shall not require and the Department of
3Agriculture shall be exempt from the requirements of Sections
415.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
5(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
6and 25. The Board and the Department of Agriculture may extend
7any or all of these exemptions to any contractor or agent
8engaged by the Department of Agriculture to conduct its race
9meetings when the Board determines that this would best serve
10the public interest and the interest of horse racing.
11    Notwithstanding any provision of law to the contrary, it
12shall be lawful for any licensee to operate pari-mutuel
13wagering or contract with the Department of Agriculture to
14operate pari-mutuel wagering at the DuQuoin State Fairgrounds
15or for the Department to enter into contracts with a licensee,
16employ its owners, employees or agents and employ such other
17occupation licensees as the Department deems necessary in
18connection with race meetings and wagerings.
19    (b) The Board is vested with the full power to promulgate
20reasonable rules and regulations for the purpose of
21administering the provisions of this Act and to prescribe
22reasonable rules, regulations and conditions under which all
23horse race meetings or wagering in the State shall be
24conducted. Such reasonable rules and regulations are to provide
25for the prevention of practices detrimental to the public
26interest and to promote the best interests of horse racing and

 

 

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1to impose penalties for violations thereof.
2    (c) The Board, and any person or persons to whom it
3delegates this power, is vested with the power to enter the
4facilities and other places of business of any licensee to
5determine whether there has been compliance with the provisions
6of this Act and its rules and regulations.
7    (d) The Board, and any person or persons to whom it
8delegates this power, is vested with the authority to
9investigate alleged violations of the provisions of this Act,
10its reasonable rules and regulations, orders and final
11decisions; the Board shall take appropriate disciplinary
12action against any licensee or occupation licensee for
13violation thereof or institute appropriate legal action for the
14enforcement thereof.
15    (e) The Board, and any person or persons to whom it
16delegates this power, may eject or exclude from any race
17meeting or the facilities of any licensee, or any part thereof,
18any occupation licensee or any other individual whose conduct
19or reputation is such that his presence on those facilities
20may, in the opinion of the Board, call into question the
21honesty and integrity of horse racing or wagering or interfere
22with the orderly conduct of horse racing or wagering; provided,
23however, that no person shall be excluded or ejected from the
24facilities of any licensee solely on the grounds of race,
25color, creed, national origin, ancestry, or sex. The power to
26eject or exclude an occupation licensee or other individual may

 

 

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1be exercised for just cause by the licensee or the Board,
2subject to subsequent hearing by the Board as to the propriety
3of said exclusion.
4    (f) The Board is vested with the power to acquire,
5establish, maintain and operate (or provide by contract to
6maintain and operate) testing laboratories and related
7facilities, for the purpose of conducting saliva, blood, urine
8and other tests on the horses run or to be run in any horse race
9meeting, including races run at county fairs, and to purchase
10all equipment and supplies deemed necessary or desirable in
11connection with any such testing laboratories and related
12facilities and all such tests.
13    (g) The Board may require that the records, including
14financial or other statements of any licensee or any person
15affiliated with the licensee who is involved directly or
16indirectly in the activities of any licensee as regulated under
17this Act to the extent that those financial or other statements
18relate to such activities be kept in such manner as prescribed
19by the Board, and that Board employees shall have access to
20those records during reasonable business hours. Within 120 days
21of the end of its fiscal year, each licensee shall transmit to
22the Board an audit of the financial transactions and condition
23of the licensee's total operations. All audits shall be
24conducted by certified public accountants. Each certified
25public accountant must be registered in the State of Illinois
26under the Illinois Public Accounting Act. The compensation for

 

 

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1each certified public accountant shall be paid directly by the
2licensee to the certified public accountant. A licensee shall
3also submit any other financial or related information the
4Board deems necessary to effectively administer this Act and
5all rules, regulations, and final decisions promulgated under
6this Act.
7    (h) The Board shall name and appoint in the manner provided
8by the rules and regulations of the Board: an Executive
9Director; a State director of mutuels; State veterinarians and
10representatives to take saliva, blood, urine and other tests on
11horses; licensing personnel; revenue inspectors; and State
12seasonal employees (excluding admission ticket sellers and
13mutuel clerks). All of those named and appointed as provided in
14this subsection shall serve during the pleasure of the Board;
15their compensation shall be determined by the Board and be paid
16in the same manner as other employees of the Board under this
17Act.
18    (i) The Board shall require that there shall be 3 stewards
19at each horse race meeting, at least 2 of whom shall be named
20and appointed by the Board. Stewards appointed or approved by
21the Board, while performing duties required by this Act or by
22the Board, shall be entitled to the same rights and immunities
23as granted to Board members and Board employees in Section 10
24of this Act.
25    (j) The Board may discharge any Board employee who fails or
26refuses for any reason to comply with the rules and regulations

 

 

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1of the Board, or who, in the opinion of the Board, is guilty of
2fraud, dishonesty or who is proven to be incompetent. The Board
3shall have no right or power to determine who shall be
4officers, directors or employees of any licensee, or their
5salaries except the Board may, by rule, require that all or any
6officials or employees in charge of or whose duties relate to
7the actual running of races be approved by the Board.
8    (k) The Board is vested with the power to appoint delegates
9to execute any of the powers granted to it under this Section
10for the purpose of administering this Act and any rules or
11regulations promulgated in accordance with this Act.
12    (l) The Board is vested with the power to impose civil
13penalties of up to $5,000 against an individual and up to
14$10,000 against a licensee for each violation of any provision
15of this Act, any rules adopted by the Board, any order of the
16Board or any other action which, in the Board's discretion, is
17a detriment or impediment to horse racing or wagering.
18Beginning on the date when any organization licensee begins
19conducting electronic gaming pursuant to an electronic gaming
20license issued under the Illinois Gambling Act, the power
21granted to the Board pursuant to this subsection (l) shall
22authorize the Board to impose penalties of up to $10,000
23against an individual and up to $25,000 against a licensee. All
24such civil penalties shall be deposited into the Horse Racing
25Fund.
26    (m) The Board is vested with the power to prescribe a form

 

 

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1to be used by licensees as an application for employment for
2employees of each licensee.
3    (n) The Board shall have the power to issue a license to
4any county fair, or its agent, authorizing the conduct of the
5pari-mutuel system of wagering. The Board is vested with the
6full power to promulgate reasonable rules, regulations and
7conditions under which all horse race meetings licensed
8pursuant to this subsection shall be held and conducted,
9including rules, regulations and conditions for the conduct of
10the pari-mutuel system of wagering. The rules, regulations and
11conditions shall provide for the prevention of practices
12detrimental to the public interest and for the best interests
13of horse racing, and shall prescribe penalties for violations
14thereof. Any authority granted the Board under this Act shall
15extend to its jurisdiction and supervision over county fairs,
16or their agents, licensed pursuant to this subsection. However,
17the Board may waive any provision of this Act or its rules or
18regulations which would otherwise apply to such county fairs or
19their agents.
20    (o) Whenever the Board is authorized or required by law to
21consider some aspect of criminal history record information for
22the purpose of carrying out its statutory powers and
23responsibilities, then, upon request and payment of fees in
24conformance with the requirements of Section 2605-400 of the
25Department of State Police Law (20 ILCS 2605/2605-400), the
26Department of State Police is authorized to furnish, pursuant

 

 

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1to positive identification, such information contained in
2State files as is necessary to fulfill the request.
3    (p) To insure the convenience, comfort, and wagering
4accessibility of race track patrons, to provide for the
5maximization of State revenue, and to generate increases in
6purse allotments to the horsemen, the Board shall require any
7licensee to staff the pari-mutuel department with adequate
8personnel.
9(Source: P.A. 97-1060, eff. 8-24-12.)
 
10    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
11    Sec. 15. (a) The Board shall, in its discretion, issue
12occupation licenses to horse owners, trainers, harness
13drivers, jockeys, agents, apprentices, grooms, stable foremen,
14exercise persons, veterinarians, valets, blacksmiths,
15concessionaires and others designated by the Board whose work,
16in whole or in part, is conducted upon facilities within the
17State. Such occupation licenses will be obtained prior to the
18persons engaging in their vocation upon such facilities. The
19Board shall not license pari-mutuel clerks, parking
20attendants, security guards and employees of concessionaires.
21No occupation license shall be required of any person who works
22at facilities within this State as a pari-mutuel clerk, parking
23attendant, security guard or as an employee of a
24concessionaire. Concessionaires of the Illinois State Fair and
25DuQuoin State Fair and employees of the Illinois Department of

 

 

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1Agriculture shall not be required to obtain an occupation
2license by the Board.
3    (b) Each application for an occupation license shall be on
4forms prescribed by the Board. Such license, when issued, shall
5be for the period ending December 31 of each year, except that
6the Board in its discretion may grant 3-year licenses. The
7application shall be accompanied by a fee of not more than $25
8per year or, in the case of 3-year occupation license
9applications, a fee of not more than $60. Each applicant shall
10set forth in the application his full name and address, and if
11he had been issued prior occupation licenses or has been
12licensed in any other state under any other name, such name,
13his age, whether or not a permit or license issued to him in
14any other state has been suspended or revoked and if so whether
15such suspension or revocation is in effect at the time of the
16application, and such other information as the Board may
17require. Fees for registration of stable names shall not exceed
18$50.00. Beginning on the date when any organization licensee
19begins conducting electronic gaming pursuant to an electronic
20gaming license issued under the Illinois Gambling Act, the fee
21for registration of stable names shall not exceed $150, and the
22application fee for an occupation license shall not exceed $75,
23per year or, in the case of a 3-year occupation license
24application, the fee shall not exceed $180.
25    (c) The Board may in its discretion refuse an occupation
26license to any person:

 

 

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1        (1) who has been convicted of a crime;
2        (2) who is unqualified to perform the duties required
3    of such applicant;
4        (3) who fails to disclose or states falsely any
5    information called for in the application;
6        (4) who has been found guilty of a violation of this
7    Act or of the rules and regulations of the Board; or
8        (5) whose license or permit has been suspended, revoked
9    or denied for just cause in any other state.
10    (d) The Board may suspend or revoke any occupation license:
11        (1) for violation of any of the provisions of this Act;
12    or
13        (2) for violation of any of the rules or regulations of
14    the Board; or
15        (3) for any cause which, if known to the Board, would
16    have justified the Board in refusing to issue such
17    occupation license; or
18        (4) for any other just cause.
19    (e)   Each applicant shall submit his or her fingerprints
20to the Department of State Police in the form and manner
21prescribed by the Department of State Police. These
22fingerprints shall be checked against the fingerprint records
23now and hereafter filed in the Department of State Police and
24Federal Bureau of Investigation criminal history records
25databases. The Department of State Police shall charge a fee
26for conducting the criminal history records check, which shall

 

 

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1be deposited in the State Police Services Fund and shall not
2exceed the actual cost of the records check. The Department of
3State Police shall furnish, pursuant to positive
4identification, records of conviction to the Board. Each
5applicant for licensure shall submit with his occupation
6license application, on forms provided by the Board, 2 sets of
7his fingerprints. All such applicants shall appear in person at
8the location designated by the Board for the purpose of
9